Wall Street Opens the Week Cautiously as Trade Negotiation Hopes Build

Trade Negotiation major U.S. stock indexes are set for a moderately negative start this Monday, following a strong performance last week. Renewed optimism over U.S.-China trade talks and the strength of the U.S. labor market were key drivers of the recent rally.

Investors Eye London Talks and U.S. Inflation Data

This week’s trade negotiations in London are capturing market attention. Additionally, May’s Consumer Price Index (CPI) data in the U.S., set to be released on Wednesday, could shape monetary policy expectations.

Global Markets Show Mixed Performance

Asian stocks began the week with broad gains, despite weak Chinese data and a contraction in Japan’s Q1 GDP. In contrast, European markets traded lower, with some exchanges closed for the Pentecost holiday.

U.S. Futures Flat to Lower

S&P 500 and Nasdaq futures slipped 0.1%, while Dow Jones futures remained unchanged, reflecting investor caution ahead of key economic reports.

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Asian Markets Rise Despite Weak Signals

The Shanghai Composite rose 0.4% despite persistent deflation in China. Hong Kong’s Hang Seng jumped 1.4%, Japan’s Nikkei 225 gained 0.9%, and South Korea’s Kospi climbed 1.6%, supported by trade optimism.

European Markets Edge Lower

The Stoxx Europe 600 dropped 0.1%, along with declines in France’s CAC 40 and Germany’s DAX. The UK’s FTSE 100 was unchanged, while other markets were closed for the holiday.

Dollar and Bonds Reflect Macroeconomic Caution

The DXY index fell 0.3% to 98.929, showing dollar weakness despite positive—but insufficient—jobs data. Meanwhile, 30-year Treasury yields stood at 4.972%, with attention turning to Thursday’s key bond auction.

Oil and Gold Hold Steady Amid Mixed Signals

Brent and WTI crude fell 0.6% on concerns over China’s economy but were supported by trade progress hopes. Gold remained steady at $3,344.50 per ounce, with year-to-date gains exceeding 23%.

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