Wall Street Edges Lower as Fed Meeting, China Trade Talks Weigh on Sentiment

U.S. stock futures were flat Monday evening after Wall Street closed lower, with energy stocks dragging major indexes amid investor caution ahead of this week’s key Federal Reserve meeting. S&P 500 Futures dipped 0.1% to 5,669.0, Nasdaq 100 Futures dropped 0.2% to 20,024.75, while Dow Jones Futures held steady at 40,140.0 as of 20:07 ET.

Investor focus remains on the Fed’s two-day policy meeting starting Tuesday. Markets broadly expect the central bank to keep interest rates unchanged, but comments from Fed Chair Jerome Powell will be closely watched for clues on future monetary policy, especially in light of recent trade tensions and political pressure. President Trump and Treasury Secretary Scott Bessent have both pushed for rate cuts, but Powell has signaled a cautious stance.

Adding to market sentiment, U.S.-China trade relations showed signs of potential thaw. Treasury Secretary Bessent told CNBC he anticipates progress in upcoming negotiations. Meanwhile, China said it’s open to talks if they are sincere and accompanied by the removal of unilateral tariffs.

Wall Street’s major indexes closed lower in the regular session. The Dow Jones slipped 0.2%, while the S&P 500 and Nasdaq Composite each dropped 0.7%, with the S&P snapping a nine-day winning streak. Energy stocks led the decline after OPEC+ announced plans to increase oil production for a second consecutive month in June, sending oil prices to a four-year low. Shares of Exxon Mobil and Chevron fell sharply.

In corporate news, Skechers stock surged over 24% after announcing a $9.4 billion buyout deal with 3G Capital. Meanwhile, Berkshire Hathaway fell 5% following a 14% decline in its Q1 operating earnings.