Wall Street Set for Cautious Start, Dollar Dips Ahead of Critical US-China Trade Talks
On June 9, 2025, Wall Street index futures edged slightly higher, signaling a cautious start to trading, while the U.S. dollar pared recent gains as investors awaited pivotal US-China trade talks in London. The S&P 500 E-minis rose by 8 points (0.1%), and Nasdaq 100 E-minis saw modest gains, reflecting tempered optimism amid global trade uncertainties. The dollar fell 0.4% against the yen to 144.315 and 0.02% versus the Chinese yuan to 7.197, following a six-week low, as markets assessed the potential for tariff relief.
The talks, led by U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, alongside China’s Vice Premier He Lifeng, aim to mend trade tensions after a May 2025 Geneva deal paused steep tariffs (U.S. from 145% to 30%, China from 125% to 10% for 90 days). Investors hope for progress on rare earth exports and tech restrictions, spurred by a recent Trump-Xi call, but remain wary after both sides accused each other of breaching the truce.
Sentiment is fragile, weighed down by weak Chinese economic data—export growth hit a three-month low, and factory-gate deflation deepened—coupled with U.S. domestic unrest, including California protests prompting National Guard intervention. Investors are also eyeing upcoming U.S. inflation data for Federal Reserve cues. While some, like @axi_official on X, doubt immediate breakthroughs, others, like @Investingcom, report U.S. optimism for export control concessions if talks succeed. Markets brace for volatility as outcomes remain uncertain.
Source: Reuters, MarketScreener
