President Donald Trump and Chinese leader Xi Jinping are set to speak this week, White House press secretary Karoline Leavitt said yesterday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions.
Meanwhile, the Trump administration wants countries to provide their best offer on trade negotiations by tomorrow as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners seen by Reuters.
Trump said last week he planned to double tariffs on imported steel and aluminium to 50% starting tomorrow, fuelling fresh concerns among investors and impeding global stocks’ march to record highs.
In May, however, a softening of Trump’s harsh trade stance allowed a recovery in risky assets, with the benchmark S&P 500 and the tech-heavy Nasdaq posting their biggest monthly percentage gain since November 2023.
The S&P 500 remains less than 4% away from its record highs touched in February.
“Market sentiment cannot find an anchor since trade policies remain fluid,” said Kathleen Brooks, research director at XTB.
The Organisation for Economic Cooperation and Development revised its global growth forecast down to 2.9% for 2025, from 3.1% expected earlier, citing the effects of Trump’s trade war on the US economy.
Deutsche Bank, however, raised its year-end target for the S&P 500 to 6,550 from 6,150, citing lower tariff-related pressure on earnings and a resilient economy.
At 7.22am, Dow E-minis were down 132 points, or 0.31%, S&P 500 E-minis were down 14.5 points, or 0.24%, and Nasdaq 100 E-minis were down 26.75 points, or 0.12%.
Most megacap and growth stocks were down in premarket trade.
April factory orders and JOLTS job openings data are scheduled for release at 10am. US central bank officials including Fed Board Governor Lisa Cook, Chicago Fed president Austan Goolsbee and Dallas president Lorie Logan are due to speak through the day.
Later in the week, monthly jobs data may offer more signs on how trade uncertainty is affecting the world’s biggest economy.
In stocks, Pinterest rose 3.8% after JP Morgan raised its rating to “overweight” from “neutral”.
Constellation Energy rose 13.9% after Meta Platforms said it had struck a power agreement with the utility’s nuclear plant.
Dollar General rose 10.8% as the discount retailer raised its annual sales forecast after surpassing quarterly sales expectations.