Investing.com-- U.S. stock futures fell Sunday evening following the S&P 500’s longest winning streak in over two decades, as investors remained cautious amid potential U.S.-China trade talks and looked ahead to the Federal Reserve’s upcoming policy meeting later in the week.
S&P 500 Futures dropped 0.6% to 5,674.75 points, while Nasdaq 100 Futures declined 0.7% to 20,060.0 points by 19:56 ET (23:56 GMT). Dow Jones Futures also fell 0.5% at 41,218.0 points.
Wall St ended higher on strong jobs data, potential US-China trade talks
Sentiment received a boost Friday after nonfarm payrolls grew more than expected last month, indicating resilience in the labor market despite the turmoil over the Donald Trump administration’s trade policies.
Data showed that payrolls increased by 177,000 jobs last month after rising by a downwardly revised 185,000 in March. Economists had forecast 138,000 job additions.
Meanwhile, China said last week it was evaluating the possibility of trade talks with the U.S., adding that any dialogue must be based on sincerity and the removal of unilateral tariffs.
The comments came in response to recent U.S. statements suggesting a willingness to engage in trade negotiations.
On Friday, the Dow Jones Industrial Average closed 1.4% higher, while the S&P 500 advanced 1.5%, while the NASDAQ Composite also jumped 1.5%.
The S&P 500 extended gains to nine consecutive sessions on Friday, marking the longest winning streak since November 2004.
All three indices recorded weekly gains in the range of 3% to 5%.
Fed expected to hold rates steady amid tariff concerns
The Fed is scheduled to kick off its two-day meeting on Tuesday, with the central bank expected to hold interest rates steady amid global uncertainty.
Fed Chair Jerome Powell recently signalled that the policymakers were in wait-and-see mode amid inflation concerns induced by Trump tariffs. This comes despite overt pressure from President Trump and Treasury Secretary Scott Bessent to cut the policy rates.
“Presidential demands for lower interest rates are falling on deaf ears at the Fed as near-term inflation concerns limit the scope for action. Nonetheless, the US economy is cooling and that can pave the way for major rate cuts in the second half of the year,” ING analysts said in a recent note.