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Stocks Fall Pre-Bell as Investors Gauge Renewed US-China Trade Tensions
US benchmark equity indexes were trending lower before Monday’s opening bell as investors weigh renewed tensions between the US and China over tariffs.
The S&P 500 slipped 0.5% in premarket activity, the Dow Jones Industrial Average decreased 0.4%, while the Nasdaq was off 0.6%. The indexes finished the previous trading session mixed, with the Nasdaq and the S&P 500 posting their biggest monthly gains in May since November 2023.
China’s Ministry of Commerce on Monday said the US violated the trade truce reached between the two countries in Switzerland and vowed to protect its interests.
Last month, the US and China agreed to suspend most tariffs on each other’s imports for 90 days. However, US President Donald Trump on Friday accused China of violating the pact. “China, perhaps not surprisingly to some, has totally violated its agreement with us,” he said in a social media post.
US Treasury yields moved slightly higher in premarket action, with the two-year rate rising 0.4 basis point to 3.92% and the 10-year rate inching up 2.2 basis points to 4.4%.
Monday’s economic calendar has the final Purchasing Managers’ Manufacturing Index for May at 9:45 am ET, followed by the Institute for Supply Management’s manufacturing index for the same month and the construction spending report for April at 10 am.
Federal Reserve Bank of Dallas President Lorie Logan is scheduled to speak at 10:15 am, while Chicago Fed President Austan Goolsbee speaks at 12:45 pm.
Shares of Moderna MRNA rose 5.5% premarket as the company said the US Food and Drug Administration approved its new COVID-19 vaccine. Cleveland-Cliffs (CLF) skyrocketed 32%, Steel Dynamics (STLD) gained 13%, while Nucor (NUE) was up 14% as Trump reportedly said on Friday that he planned to increase duties on imported steel and aluminum to 50% from 25%.
Ulta Beauty (ULTA) rose 11% following its better-than-expected quarterly results last week. Tesla (TSLA) fell 1.9%, while Palantir (PLTR) was down 1.5%.
Campbell’s (CPB) and Science Applications International (SAIC) are scheduled to release their latest quarterly results before the bell.
West Texas Intermediate crude oil rose 3.6% to about $63 a barrel before the open. The Organization of the Petroleum Exporting Countries and its allies, or OPEC+, on Saturday decided to raise output by 411,000 barrels per day in July.
Gold increased 1.7% to $3,370 per troy ounce, while bitcoin dipped 0.7% to $104,371.
SP 500 Chart
USDJPY trade
TY Bobby – my average price is 145.450 , and I am treating it as one position.
My first target is at 142, but first I want to see reaction there as there is a fair chance we might see 140 soon ( and of course my appetite is growing, so sub 140 would be even better)
Not to worry mate, I have a trailing stop right now at 143.450 ( profit of 200 pips)
This article explains some of EURUSD’s strength this year
Why the EURO Is considered the Anti-Dollar
FX option expiries for 2 June 10am New York cut
There is just one to take note of on the day, as highlighted in bold.
That being for EUR/USD at the 1.1350 level, with large ones seen thereabouts as well for the days ahead. The expiries today might offer a bit of a floor for price action, alongside the 100 and 200-hour moving averages at 1.1330-35 nearby. That as the dollar is a little on the weaker side with markets continuing to digest what’s next on the trade front as Trump tariffs are temporarily reinstated again. Meanwhile, there is some pessimism with regards to China talks now. Surprise, surprise. Not!
EURUSD
Classic example of needing a washout in one direction (low 1.1210) to setup a new high in the direction of the broader trend where market has less capacity to absorb fresh buying.
Key level: 1.1420… puts the 1.1572 high on the radar while above it,
Otherwise, support zone 1.1380-1.1420.
Below 1.1350 would indicate a false start.
EURUSD DAILY CHART
XAUUSD (GOLD)
Move above 3331 (and 3335 = daily trendline) confirms low is in at 3245 and shift in risk to the upside
One key hurdle remains at 3366-69… above would expose 3438, the obstacle to the record 3500 high
Otherwise, keeps a bid while above 3330-35 and stronger bid at 3295
XAUUSD (GOLD) 4 HOUR CHART
THIS WEEK’S MARKET-MOVING EVENTS (all days local)
Looking ahead to the week of June 2, global markets will be closely monitoring economic data releases that could shape monetary policy decisions and offer insight into trade and labor conditions. In Europe, the spotlight will be on trade data from Germany and France—the first full month reflecting newly implemented tariffs. These figures, along with retail sales data from Italy and Switzerland, will help clarify whether consumer demand and exports are showing resilience or faltering. The European Central Bank meets Thursday and is widely expected to implement a 25 basis point rate cut, responding to subdued inflation and rising concerns over weakening growth and escalating trade friction with the U.S.
In the United States, the focus turns sharply to the labor market. Key reports—including the JOLTS survey, ADP private payrolls, jobless claims, and Friday’s official employment report—will give the Federal Reserve critical insight ahead of its June 17–18 meeting. Job growth is forecast to slow to 129,000 in May, with unemployment holding at 4.2%. While layoffs may be easing, hiring remains cautious across many sectors, particularly in retail and tech. On the manufacturing side, factory orders and ISM data are expected to reflect continued softening. Globally, markets will also watch Asian PMI data for signs of recovery and India’s central bank decision, where another rate cut is anticipated amid declining inflation and stable domestic momentum…Econoday
BTCUSD Daily
Question of a Trillion dollars is where this correction might end.
There are no proven methods that can determine exact point, but we can use some more speculative ones…
To start with, we have to assume that BTC is destined to continue Upwards for some foreseeable future
And as long as it stays above 90K that is about right.
Kind of dogma…I know 😀
Now when we have a stance about it, we can use Historical trend lines copied from BTC past – these lines are pretty exact, and based on the angle that any given pair is following once in a trend.
So here I did exactly that and placed it to have approximately the same width of the channel as previous one  – and it is similar to the level of EMA 50.
It is at about 101.200
I expect to see some serious reaction there – so we’ll see 😀
BTC should reach it in a day or two and in that case it will be at 102.500
BTCUSD (BITCOIN)
Trying to fine tune technical levels in a crypto that can move 5% in a blink of the eye seems pointless so let’s take a look at what an AT (The Amazing Trader) chart is showing going strictly by the book
Two blue AT lines drawn off the high indicated a potential change in direction that has played out.
Below 100659 would confirm a top and end of the last leg up with a target at 92783.
Otherwise, still just a retracement with support as long as it trades above 100659
BTCUSD DAILY CHART
OPEC+ oil producers stick to their guns with another big hike for July
Key points:
·        Eight OPEC+ members met online
·        OPEC+ cites steady economic outlook, healthy fundamentals
·        Started unwinding output cuts in April
·        The world’s largest group of oil producers, OPEC+, stuck to its guns on Saturday with another big increase of 411,000 barrels per day for July as it looks to wrestle back market share and punish over-producers.
·        Having spent years curbing production – more than 5 million barrels a day (bpd) or 5% of world demand – eight OPEC+ countries made an modest output increase in April before tripling it for May, June and now July.
·        They are spurring production despite the extra supply weighing on crude prices as group leaders Saudi Arabia and Russia seek to win back market share as well as punish over-producing allies such as Iraq and Kazakhstan.
·        In a statement OPEC+ cited a “steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories” as its reasoning for the July increase.
·        OPEC+ pumps about half of the world’s oil and includes OPEC members and allies such as Russia.
·        Its increased supply is weighing on crude prices, squeezing all producers, but some more than others, including a key group of rivals – U.S. shale producers, analysts say.
·        Oil prices BRN1! fell to a four-year low in April, slipping below $60 per barrel after OPEC+ said it was tripling its output hike in May and as U.S. President Donald Trump’s tariffs raised concerns about global economic weakness. Prices closed just below $63 on Friday.
·        Global oil demand is expected to grow by an average of 775,000 bpd in 2025, according to a Reuters poll of analysts published on Friday, while the International Energy Agency in its latest outlook saw an increase of 740,000 bpd.
·        Besides the 2.2 million bpd cut that the eight members started to unwind in April, OPEC+ has two other layers of cuts that are expected to remain in place until the end of 2026.
“The oil market remains tight indicating it can absorb additional barrels, as the effective increase should be smaller as several of the eight countries are overproducing, and demand is seasonally rising,” said Giovanni Staunovo, analyst at UBS.
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