FX.co ★ US Futures Lower on Growing Trade Uncertainty

U.S. stock futures dipped on Friday, with contracts for the three major indices slipping by nearly 0.3% due to escalating trade war tensions. President Donald Trump alleged on social media that China had "totally violated" its trade agreement with the U.S., though he did not provide additional specifics. Earlier in the day, Treasury Secretary Scott Bessent mentioned that trade negotiations with China had reached "a bit of a standstill." Additionally, a federal appeals court on Thursday temporarily reimposed Trump's tariffs, just a day after a trade court ruled he had exceeded his authority. Investors were also digesting new economic data. The Personal Consumption Expenditures (PCE) price index aligned closely with expectations, as both headline and core figures inched up by 0.1% month-over-month. On an annual scale, both metrics slowed, providing some relief regarding inflationary pressures. Personal spending growth also slowed to 0.2%, aligning with predictions. This data bolstered the anticipation that the Federal Reserve may have the flexibility to reduce interest rates later this year.