US Stock Futures Dip as Investors Prepare for Trade Talks and Inflation Reports

US stock index futures experienced a slight decrease on Sunday evening, reflecting investor unease before vital trade negotiations between Washington and Beijing, along with anticipated US inflation data set to release later this week.

Market Sentiment Shifts on Trade and Civil Unrest

Futures retreated following Friday’s positive session, where encouraging nonfarm payrolls data provided a temporary boost to optimism. However, resurfacing concerns regarding global trade and domestic stability have diminished investor confidence.

Civil unrest in Los Angeles has introduced additional uncertainty after the National Guard’s deployment aimed to manage escalating protests against President Trump’s immigration policies. Though not immediately market-moving, this unrest adds a political risk component that traders cannot overlook.

Futures Show Slight Declines in Early Trading

As of 23:17 GMT:

• S&P 500 Futures dipped 0.1% to 5,998.75
• Nasdaq 100 Futures declined 0.2% to 21,748.50
• Dow Jones Futures fell 0.1% to 42,772.00

These movements follow the previous close of the S&P 500 at 6,000.36, marking its highest level since February.

Attention Turns to US-China Trade Conversations

Markets are closely observing as U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer convene with China’s Vice Premier He Lifeng in London. This meeting represents the latest attempt to overcome stalemates over tariffs, semiconductor export controls, and restrictions on rare earth materials.

This gathering follows last week’s dialogues between President Trump and President Xi. Despite high-level engagement, U.S officials admitted negotiations have stalled, particularly around sensitive tech and trade matters.

Inflation Reports in Focus

Investors are closely watching for the Consumer Price Index (CPI) report scheduled for Wednesday, forecasted to show a mild rise in inflation for May, driven primarily by higher electricity costs and the impacts of trade tariffs.

Key economic metrics, such as inflation and industrial production, will be essential in guiding expectations surrounding the Federal Reserve’s interest rate strategy. Markets are still processing the recently released stronger-than-expected payrolls data, which indicated labor market resilience despite ongoing trade and policy challenges.