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Investing.com - U.S. stock futures pointed lower on Monday, with investors looking ahead to a fresh round of trade talks between the U.S. and China as well as key inflation figures later this week.
By 03:30 ET (07:30 GMT), the Dow futures contract had slipped by 46 points, or 0.1%, S&P 500 futures had fallen by 6 points, or 0.1%, and Nasdaq 100 futures had dropped by 39 points, or 0.2%.
The main averages on Wall Street ended higher on Friday, fueled by a stronger-than-anticipated U.S. labor market reading for May, and President Donald Trump’s announcement of today’s meeting between U.S. and Chinese officials in London. Shares in Tesla (NASDAQ:TSLA) also rebounded from a slump that stemmed in part from a verbal and online brawl between CEO Elon Musk and Trump.
At the close of trading, the S&P 500 stood at above the 6,000 for the first time since February 21.
On the economic calendar, all eyes will be on the release of May’s reading of U.S. consumer price, which could provide a glimpse into the impact of Trump’s aggressive tariff policies on inflation.
The Labor Department’s consumer price index is tipped to speed up slightly to 2.5% from 2.3%, while the month-on-month gauge is expected to match April’s pace of 0.2%.
Cutting out more volatile items like food and fuel, the index is seen edging up to 2.9% year-over year and 0.3% on a monthly basis.
Following the release of the data on Wednesday, further data points are due out that track producer prices and consumer expectations for inflation in the months ahead.
Oracle (NYSE:ORCL), Adobe (NASDAQ:ADBE) among companies due to report
The quarterly earnings season, meanwhile, is drawing to a close, with only a trickle of companies set to report this week.
Among the headliners will be cloud-computing group Oracle, which is slated to unveil its results on Wednesday.
In March, Oracle CEO Safra Catz outlined a solid growth trajectory for the business over its next two fiscal years, underpinned by surging demand for cutting-edge artificial intelligence products. Oracle has made AI a pillar of its future strategy, and is pushing to use the nascent technology to help its cloud services process large reams of information.
Elsewhere, AI will be a major focal point for Adobe when the Photoshop-owner delivers its latest earnings after the close of U.S. markets on Thursday.
Adobe is working to fold AI into its suite of software tools crucial for online marketing. Yet monetization of its AI efforts has so far been sluggish, leading the group to forecast relatively tepid second-quarter returns. Shares in Adobe have dipped by over 5% year-to-date.
"While macro data and earnings results may look softer in the summer months as a result of continued tariff uncertainty and pay-back in demand post the pre-tariff pull forward, we believe the market has already priced this type of moderate slowdown in growth," analysts at Morgan Stanley (NYSE:MS) said in a note to clients.
What analysts are saying about U.S. stocks
JPMorgan Chase (NYSE:JPM): "Big picture, our view is that activity-inflation tradeoff is likely to deteriorate into the summer, with potentially rising bond yields, which is set to arrest the equity rebound seen over the past two months."
Evercore ISI: "[W]ith trade uncertainty having peaked, have universally unloved small caps become ’so bad, they’re good’? Tactically, cratered sentiment intersects with favorable June seasonality, when the small size reliably outperforms, aligning with the annual Russell Index rebalance. History suggests this trend will be amplified in 2025."
RBC: "The rebound off the April 8th low in the S&P 500 continues to track the path of the rebounds off the major post global financial crisis (GFC) non-recession drawdowns. The history of past rebounds off of major post GFC drawdowns suggests the recovery could have more room to go through year-end, and remains the biggest risk to our YE 2025 S&P 500 price target of 5,730."