U.S.-China Trade Talks on the Spotlight Amid Market Movements

U.S. stock index futures remained steady as investors await U.S.-China trade talks in London. The recent dialogue follows a preliminary agreement aimed at easing trade tensions. Meanwhile, U.S. equity markets showed signs of potential recovery, with Citigroup raising its S&P 500 year-end target amidst optimism in corporate earnings and AI growth.

On Monday, U.S. stock index futures largely stayed stable as investors anticipated talks between U.S. and Chinese officials aimed at bridging trade disagreements that have shaken financial markets throughout the year.

Officials from both countries are set to meet in London to discuss sticking points around a preliminary deal reached in Geneva, which temporarily eased economic tensions. This engagement follows a recent phone discussion between U.S. President Donald Trump and China's Xi Jinping, highlighting unresolved trade issues.

Amid this backdrop, U.S. equities witnessed a rally in May, driven by hopes of further trade agreements, strong corporate earnings, and contained inflation data. While the Federal Reserve is expected to keep rates steady next week, traders are focused on any signs of inflation pressures that could arise from trade tariffs.

(With inputs from agencies.)