Global markets opened the week with a cautious tone, as traders looked toward renewed U.S.-China trade discussions in London and Apple’s (NASDAQ:AAPL) annual Worldwide Developers Conference (WWDC). Investors hope these developments will shed light on easing trade tensions and unveiling technological innovations. Meanwhile, Chinese export data pointed to slowing growth, adding further uncertainty to the global economic outlook.
Futures Slip as Markets Await Key Developments
U.S. stock futures edged lower on Monday as investors braced for key inflation figures and the resumption of U.S.-China trade negotiations.
By 03:30 ET (07:30 GMT), Dow futures had fallen 46 points (0.1%), S&P 500 futures dropped 6 points (0.1%), and Nasdaq 100 futures declined by 39 points (0.2%).
Wall Street ended last week on a strong note, buoyed by unexpectedly robust U.S. labor market data and the announcement of Monday’s high-stakes trade meeting. Shares of Tesla (NASDAQ:TSLA) also rebounded from losses linked to a public spat between CEO Elon Musk and former President Donald Trump.
At Friday’s close, the S&P 500 surpassed the 6,000-point threshold for the first time since February 21.
U.S.-China Trade Talks Resume in London
Renewed trade negotiations between the U.S. and China in an undisclosed London location have become a focal point for markets. Optimism is cautiously building that the world’s largest economies can de-escalate tensions over tariffs and export controls.
The talks follow a preliminary agreement in Geneva last month, which included a temporary suspension of escalating tit-for-tat tariffs. Trump’s “reciprocal” tariffs on Chinese goods are on hold until August 12.
Representing the U.S. are Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Commerce Secretary Howard Lutnick. Vice Premier He Lifeng leads China’s delegation.
Last week, Trump and Chinese President Xi Jinping held a phone call, described as “positive” by the U.S. side. However, Chinese officials emphasized Beijing’s demand for de-escalation, particularly concerning tariffs and Taiwan.
Apple WWDC Keynote Draws Market Attention
Beyond geopolitics, market participants are closely watching Apple’s WWDC keynote, which begins Monday. The event traditionally showcases upcoming software updates, and this year’s focus is rumored to include significant changes to the iOS operating system.
According to reports, Apple may shift its operating system naming convention to a year-based format, with iOS 26 tipped to feature substantial design updates. However, the anticipated integration of advanced AI capabilities into Siri will likely be delayed, as Apple previously acknowledged project setbacks.
Apple’s perceived lag in AI development has weighed on investor sentiment, contributing to a 16% drop in the company’s share price this year.
Chinese Export Growth Slows
China’s May export data revealed a significant deceleration, with shipments to the U.S. plunging 34.5% year-over-year—the steepest decline since the early days of the COVID-19 pandemic.
Overall export growth slowed to 4.8%, missing expectations of a 5% rise and down from 8.1% the previous month. Imports fared even worse, falling 3.4% year-over-year amid weak domestic demand and growing economic uncertainty.
These figures underscore the challenges facing China’s trade-dependent economy, particularly in the face of ongoing tensions with the U.S.
Oil Prices Dip, Retain Weekly Gains
Oil prices slipped slightly on Monday as traders monitored developments in the U.S.-China trade talks. Brent crude futures declined 0.5% to $66.16 a barrel, while U.S. West Texas Intermediate (WTI) futures fell 0.4% to $64.30.
Despite Monday’s dip, oil prices retained gains from last week, driven by optimism over a potential trade deal and its implications for global economic growth. Brent climbed 4%, and WTI rose over 6% last week, marking their first weekly gains in three weeks.
Markets remain on edge as critical events unfold this week, with outcomes likely to shape investor sentiment and economic prospects for months to come.