Investing.com - U.S. stock index futures pointed to a slightly lower open on Wall Street Monday, as a recovery in risk appetite faded with investors remaining cautious amid a lack of significant progress in resolving the trade dispute between the U.S. and China.
The blue-chip Dow futures were flat by 6:55 AM ET (10:55 GMT), S&P 500 futures dipped 0.13%, while the Nasdaq 100 futures traded down 0.3%.
Two days of trade talks between the U.S. and China got underway in Beijing on Monday, with investors hoping the two sides can strike a comprehensive trade deal before the end of a 90-day truce in the trade war.
Washington and Beijing have until March 1 to make a deal, after which U.S. President Donald Trump has pledged to ramp up tariffs to 25%, from 10%, on $200 billion worth of Chinese imports.
The prolonged trade spat between the world’s two largest economies has given rise to fears over an economic slowdown in China following a recent string of weak economic data and fueled concerns over the impact on the broader global economy after Apple (NASDAQ:AAPL) issued a revenue warning last week.
Political risks also weighed on investor sentiment, with U.S. lawmakers still unable to reach an agreement to end a government shutdown.
U.S. markets rebounded Friday, with the Dow surging more than 700 points after a stronger-than-expected U.S. jobs report and following comments by Federal Reserve Chairman Jerome Powell, who indicated the central bank would be patient and flexible on monetary policy this year.
Powell said the Fed is not on a preset path of interest rate hikes and that it will be sensitive to the downside risks markets are pricing in.
Despite Friday's stronger than expected U.S. December jobs data, many analysts believe the world's largest economy is losing momentum and further rate hikes are the last thing it needs.
On the data front, ISM non-manufacturing figures for December are due to be released at 10:00 AM ET and are expected to show a modest decline.
-- Reuters contributed to this report.