TLDR
- US stock futures edged higher Monday with Dow futures up 0.1% ahead of US-China trade talks in London
- S&P 500 crossed the 6,000-point threshold for the first time since February last week
- President Trump expressed optimism about the trade talks in a Truth Social post Friday
- US negotiators expected to press China to speed up rare-earth mineral exports
- Treasury yields fell and dollar weakened as investors await trade talk outcomes
US stock futures opened higher Monday as officials from China and the United States prepared to meet in London for renewed trade talks. The discussions come as the world’s two largest economies seek to establish a lasting trade agreement.
Delegates from #China and the U.S. are flying into Britain this weekend, ready for trade talks to try and break an impasse in negotiations.Vice Premier He Lifeng and his team are meeting delegates from the U.S., including Treasury Secretary Scott Bessent. pic.twitter.com/NAVRCrGerd
— Consulate General of PR.China in Manchester (@ConsulateChnMan) June 9, 2025
Futures tracking the Dow Jones Industrial Average climbed 34 points, representing a 0.1% gain. S&P 500 futures also edged up 0.1%, while contracts tied to the tech-heavy Nasdaq 100 remained flat.
The three major indexes posted gains last week following the monthly nonfarm payrolls report. The data showed steady hiring, helping the S&P 500 cross the 6,000-point threshold for the first time since February.
Investors appeared to be in wait-and-see mode ahead of the trade discussions. However, signs suggest that trade tensions between Beijing and Washington may be cooling.
President Donald Trump posted on Truth Social late Friday that he believed the meeting would “go very well.” His negotiators are expected to push China to accelerate exports of rare-earth minerals during the talks.
Market Response to Trade Developments
The 10-year US Treasury note yield retreated 3 basis points to 4.48% early Monday. The US Dollar Index, which tracks the greenback against six other currencies, slid 0.4%.
Benchmark oil prices were up 0.1% as markets opened. Gold futures continue to consolidate according to technical analysis charts.
Stocks ended last week on a positive note, shaking off volatility that followed Trump’s tariff hikes in early April. Encouraging jobs data helped ease recession fears fueled by the policy changes.
The current trade talks follow a phone call between Trump and Chinese President Xi last week. Hopes are high for a breakthrough in these high-level discussions.
Previous Trade Agreement Challenges
Relations between the two countries have deteriorated since the Geneva pact in mid-May. Both the US and China have accused each other of not keeping to the trade truce.
The countries have increased pressures in other areas beyond trade. Warnings suggest that tariff barriers could harm economies worldwide, particularly the US.
Investors are looking for a revival of momentum shown in previous negotiations. The stakes remain high as both sides work toward a comprehensive agreement.
Kathleen Brooks, research director for foreign exchange brokerage XTB, said stocks may need a new driver to extend last week’s rally. She noted that investors have scaled back expectations for Federal Reserve interest rate cuts this year.
Brooks emphasized that the outcome of these discussions will be crucial for market sentiment. The talks represent a key test for both countries’ commitment to reducing trade tensions.
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