U.S. Stocks May Lack Direction Amid Focus On U.S.-China Talks

(RTTNews) - The major U.S. index futures are currently pointing to a roughly flat open on Tuesday, with stocks likely to continue experiencing choppy trading after ending yesterday's lackluster session narrowly mixed.

Traders may remain reluctant to make significant moves as they continue to await solid news out of trade talks between the U.S. and China.

U.S. Commerce Secretary Howard Lutnick told reporters the talks are "going well" and said he expects the negotiations to continue all day today.

A lack of major U.S. economic data may also keep some traders on the sidelines as they look ahead to the release of reports on consumer and producer price inflation in the coming days.

Following the strong upward move seen during last Friday's session, stocks turned in a relatively lackluster performance during trading on Monday. Despite the choppy trading, the tech-heavy Nasdaq reached a new three-month closing high.

The major averages ended the day narrowly mixed. While the Dow edged down 1.11 points or less than a tenth of a percent to 42,761.76, the S&P 500 inched up 5.52 points or 0.1 percent to 6,005.88 and the Nasdaq rose 61.28 points or 0.3 percent to 19,591.24.

The choppy trading on Wall Street came as traders awaited any news out of U.S.-China trade talks in London that could help ease trade tensions between the two superpowers.

Beijing confirmed that Vice Premier He Lifeng would attend the talks. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer would likely be present with the U.S. delegation.

Traders were also looking ahead to the release of some key economic data in the coming days, including closely watched reports on consumer price and producer price inflation.

A University of Michigan report on U.S. consumer sentiment and inflation expectations may also impact trading later in the week.

While most of the major sectors ended the day showing only modest moves, semiconductor stocks moved sharply higher on the day, driving the Philadelphia Semiconductor Index up by 2.0 percent to its best closing level in over three months.

Considerable strength was also visible among computer hardware stocks, as reflected by the 1.2 percent gain posted by the NYSE Arca Computer Hardware Index.

Oil service, telecom and networking stocks are also seeing significant strength, while utilities stocks showed a notable move to the downside.

Commodity, Currency Markets

Crude oil futures are climbing $0.43 to $65.72 a barrel after jumping $0.71 to $65.29 a barrel on Monday. Meanwhile, after rising $8.30 to $3,354.90 an ounce in the previous session, gold futures are inching up $2.90 to $3,357.80 an ounce.

On the currency front, the U.S. dollar is trading at 144.52 yen compared to the 144.57 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1429 compared to yesterday's $1.1422.

Asia

Asian stocks advanced on Tuesday ahead of a second day of talks in London between China and the U.S. to resolve tariff disputes and strengthen economic relations. U.S. officials expressed optimism after the first day of negotiations, boosting investor sentiment.

Nonetheless, regional gains were capped amid caution ahead of key U.S. inflation readings due this week and the Federal Reserve's interest-rate decision, which is slated for June 18.

The dollar inched up in Asian trading and gold was marginally higher around $3,330 per ounce levels, while oil held an advance on hopes for progress in U.S.-China trade negotiations.

China's Shanghai Composite Index traded within a tight range before ending 0.4 percent lower at 3,384.82 amid prevailing tensions over shipments of technology and rare earth elements. Hong Kong's Hang Seng Index slipped marginally to close at 24,162.87.

Japanese markets ended modestly higher to extend gains for a third consecutive session as bond yields fell after reports on relief over possible government auction.

The Nikkei 225 Index rose 0.3 percent to 38,211.51, while the broader Topix Index finished marginally higher at 2,786.24.

Seoul stocks ended higher for a fifth straight session on the back of foreign buying. The Kospi climbed 0.6 percent to 2,871.85, led by defense and shipbuilding shares.

Hanwha Aerospace soared 6.4 percent and its affiliate Hanwha Ocean surged 4.4 percent.

Australian markets rose notably to close at a record high. The benchmark S&P/ASX 200 Index jumped 0.8 percent to 8,587.20, led by banks. The big four banks rose between 1 percent and 1.5 percent. The broader All Ordinaries Index closed up 0.8 percent at 8,812.70.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index edged up by 0.2 percent to 12,564.42.

Europe

European stocks are mostly lower on Tuesday as investors closely monitor the second day of high-stakes U.S.-China trade negotiations.

U.K. stocks edged up slightly and the British pound slipped below $1.35 after official data showed the U.K. unemployment rate rose slightly in the three months to April period.

The ILO jobless rate rose to 4.6 percent, as expected, from 4.5 percent in the preceding period.

Average earnings including bonus grew 5.3 percent in three months to April from the previous year - matching expectations.

The pan European STOXX 600 Index has slipped 0.3 percent after ending flat with a negative bias on Monday.

The German DAX Index is down by 0.4 percent and the French CAC 40 Index is down by 0.1 percent, while the U.K.'s FTSE 100 is up by 0.5 percent.

Defense stocks traded lower, with Saab AB and Renk Group AG falling 4.3 percent and 8.2 percent, respectively.

Barclays fell about 1 percent on reports that the British lender is preparing to cut more than 200 jobs in its investment bank in the coming days.

FirstGroup shares were up more than 7 percent. The transport operator announced a new £50 million share buyback after delivering impressive fiscal 2025 earnings.

Oxford Instruments dropped 1 percent after it agreed to sell its quantum-focused NanoScience business to Quantum Design for £60 million.

Homebuilder Bellway surged 4.6 percent after lifting its full-year revenue outlook.

Novo Nordisk rallied 2.3 percent on reports that activist hedge fund Parvus Asset Management is building a stake in the Danish pharmaceutical giant.

U.S. Economic News

The Treasury Department is scheduled to announce the results of this month's auction of $58 billion worth of three-year notes at 1 pm ET.