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Investing.com - U.S. stock futures lose some ground ahead of a second day of all-important U.S.-China trade negotiations. President Donald Trump indicates some progress in the first day of talks, while other U.S. officials hint at a possible deal around the export of critical rare earths materials. U.S. Health Secretary Robert F. Kennedy Jr. unveils wholesale changes at a major vaccine advisory panel, while Apple (NASDAQ:AAPL)’s keynote address at its yearly developers conference includes only incremental improvements to its artificial intelligence features.
1. Futures waver
U.S. stock futures hovered below the flatline on Tuesday, as investors awaited more details out of a new day of trade talks between the U.S. and China in London.
By 04:13 ET (08:13 GMT), the Dow futures contract had inched down by 56 points, or 0.1%, S&P 500 futures had fallen by 5 points, or 0.1%, and Nasdaq 100 futures had retreated by 23 points, or 0.1%.
The benchmark S&P 500 eked out a slight gain in the previous session, fueled by advances in shares in tech giants Amazon (NASDAQ:AMZN) and Google-parent Alphabet (NASDAQ:GOOGL).
Warner Bros Discovery (NASDAQ:WBD), meanwhile, dropped by around 3% after the media group said it would split its streaming and studio divisions from its ailing cable television operations. The stock had initially popped by roughly 13% after the announcement.
Burger chain McDonald’s (NYSE:MCD) also saw its shares edge down following a downgrade by analysts at Morgan Stanley (NYSE:MS), while Robinhood Markets (NASDAQ:HOOD) fell by nearly 2% after S&P Dow Jones kept its S&P 500 constituents unchanged despite some speculation that the online brokerage would be added to the index.
2. U.S.-China trade talks to enter second day
The focus is now squarely on a second day of crunch U.S.-China trade talks, with investors hopeful that the discussions will yield a cooling in tensions between the world’s two largest economies.
On Monday, officials from both sides met at Lancaster House in London, as they looked to settle disputes over export controls on so-called rare earths materials that are considered to be crucial in global supply chains.
U.S. President Donald Trump suggested that he had heard "good reports" from White House representatives at the gatherings, helping the dollar firm against a basket of currency peers on Tuesday.
Kevin Hassett, the director of the National Economic Council, also indicated that the negotiations were likely to lead to Beijing agreeing to release rare earths for export, while Washington would allow China to have access to semiconductors. Chips stocks rose on Monday.
Both sides previously reached a tentative truce after talks in Geneva, although recent statements have pointed to the fragility of the détente.
3. U.S. Health Secretary guts CDC vaccine panel
U.S. Health Secretary Robert F. Kennedy Jr. has removed all 17 members of a Centers for Disease Control and Prevention panel that provided recommendations on vaccines.
Known as the Advisory Committee on Immunization Practices, the panel includes health care professionals like epidemiologists and infectious-disease doctors who offer recommendations to the CDC director about the types of jabs adults and children should receive. All of the members were appointed by former U.S. President Joe Biden.
Kennedy, who has voiced skepticism over vaccines in the past, is in the process of replacing all of the panel, the Department of Health and Human Services said.
Although Kennedy said the move would help restore "public trust above any specific pro- or anti-vaccine agenda," a slew of vaccine scientists argued that the culling would undermine confidence in health agencies.
Vaccine makers like GSK, Sanofi (NASDAQ:SNY), Moderna (NASDAQ:MRNA), and AstraZeneca (NASDAQ:AZN) were viewed as potentially exposed to the decision, as it could extend the amount of time it takes the government to approve new jabs.
4. Apple announces incremental AI features
Apple kicked off its annual developers conference with a keynote address that included a range of updates to its artificial intelligence offerings.
But shares in the iPhone manufacturer slid on Monday after the developments failed to excite investors keen for the California-based group to roll out big advancements in its harnessing of the nascent technology.
Apple’s presentations at its Worldwide Developers Conference featured improvements like live translations for phone calls. Yet the firm kept many of its AI promises to consumers muted.
A perceived lack of progress on AI compared to other tech industry titans has weighed on sentiment around Apple, sending shares in the company down by more than 17% so far this year.
5. Oil inches up
Oil prices edged higher Tuesday, with traders anxiously awaiting the outcome of U.S.-China talks that could pave the way for easing trade tensions and improving fuel demand.
At 03:31 ET, Brent futures gained 0.1% to $67.11 a barrel, after rising to the highest since April 28 on Monday, and U.S. West Texas Intermediate crude futures rose 0.1% to $65.33 a barrel.
The prospect of a U.S.-China trade deal has helped ease some demand concerns, with free-flowing trade expected to boost global economic activity and thus crude demand.