Investing.com - U.S. stock futures inch down as traders gauge trade-related headlines from U.S. President Donald Trump and looked ahead to company earnings and central bank decisions later this week. A metric of services activity in the U.S. is due out later in the session, which could provide some insight into the state of a key sector for the American economy. Elsewhere, Berkshire Hathaway (NYSE:BRKa) CEO and legendary investor Warren Buffett has said he will step aside at the end of the year, handing the reins of the conglomerate over Vice Chairman Greg Abel. Oil prices drop after the OPEC+ producer group unveils plans to increase output in the months to come.
1. Futures lower
U.S. stock futures edged lower on Monday, as investors eyed Trump’s statements on trade talks with China and focused in on a slate of corporate earnings and central bank announcements this week.
By 03:28 ET (07:28 GMT), the Dow futures contract had dipped by 279 points, or 0.7%, S&P 500 futures had fallen by 43 points, or 0.8%, and Nasdaq 100 futures had slipped by 154 points, or 0.8%.
The main averages rose in the prior session, bolstered by data showing stronger-than-anticipated job growth in April, while the unemployment rate was unchanged at 4.2%. The figures came after an advance reading from the Commerce Department found that the U.S. economy shrank in the first quarter largely because of a tariff-related surge in imports.
Meanwhile, China said that it was mulling an offer to discuss Trump’s steep 145% levies. Beijing has responded to the measure with 125% duties of its own on U.S. imports.
This week, analysts will be pouring through even more economic data, as well as interest rate decisions from the Federal Reserve, the Bank of England and others. Results are also due out from a plethora of companies, including Ford Motor (NYSE:F), Advanced Micro Devices (NASDAQ:AMD), Walt Disney (NYSE:DIS), ConocoPhillips (NYSE:COP), and Coinbase (NASDAQ:COIN).
2. ISM services PMI ahead
Highlighting the economic calendar on Monday will be the Institute for Supply Management’s non-manufacturing purchasing managers’ index for April.
The reading is tipped to show that activity in the services sector in the U.S. -- a major driver of the world’s largest economy -- cooled slightly last month. However, it is still expected to remain above 50 points, the key divider between expansion and contraction.
"There’s a very real risk this dips into contraction territory, which would underscore the sense that the economy is cooling and recession is a realistic possibility," said James Knightley, Chief International Economist at ING, in a note.
Worries have swirled around the possible impact of Trump’s punishing tariffs on the U.S. economy, especially after last week’s disappointing gross domestic product numbers. Economists have flagged that the tariffs could drive up inflationary pressures and potentially drag the broader economy into a recession.
The ISM data may factor into how Fed officials approach their upcoming rate decision this week. Despite ongoing pressure from Trump to cut borrowing costs to help support growth, commentary from Fed Chair Jerome Powell has indicated that the central bank is likely to leave monetary policy unaltered.
3. Buffett to step aside
Warren Buffett has said he would step aside at the helm of the conglomerate at the end of 2025, with vice chairman Greg Abel set to succeed him.
The announcement over the weekend establishes an endpoint for the 94-year old Buffett’s longstanding run at Berkshire, which has seen him grow it from a textiles business into a $1.18 trillion giant with investments in everything from insurance to ice cream. In the process, Buffett has become one of the world’s most admired and respected investors, garnering the moniker the "Oracle) of Omaha," referencing the Nebraska city where Berkshire is headquartered.
Buffett’s decision came as something of a surprise, given that he had not previously signaled an intention to move aside. Abel, 62, faces the expectation of upholding the standards set by Buffett, although he said his management approach with subsidiaries would be "more active."
In the first quarter, Berkshire posted a 14% drop in operating earnings versus the prior year to $9.64 billion, due in large part to insurance losses linked to devastating wildfires in California.
Shares in Berkshire were lower by more than 2% in premarket U.S. trading on Monday.
4. Trump on possible China trade talks
Trump said on Sunday that he had no plans to speak with Chinese President Xi Jinping this week, although he noted that U.S. officials had been in contact with Beijing.
Recent speculation has revolved around any potential discussions between the U.S. and China, with the world’s two largest economies slapping tariffs on one another that threaten to heavily weigh on trade flows.
Speaking on Air Force One on Sunday, Trump said he was in talks with China and a selection of other countries about trade deals. But he added that his main priority was to finalize an agreement with Beijing, who has become one of the central targets of his push to roll out elevated tariffs during the early months of his second term in the White House.
Chinese officials, for their part, have said that they are "evaluating" an offer from Washington to discuss the matter, but told the U.S. that it should not engage in "extortion and coercion".
5. Oil slumps on OPEC+ production hike
Oil prices fell sharply on Monday after the OPEC+ producer group signaled over the weekend that it will further increase output in the coming months.
The prospect of higher supplies and weakening demand dented crude, which was already nursing steep losses so far in 2025. Monday’s losses put oil back in sight of a four-year low hit in early-April.
Brent oil futures for June fell 2.0% to $60.05 a barrel, while West Texas Intermediate crude futures declined 2.1% to $56.59 per barrel by 03:34 ET.
The Organization of the Petroleum Exporting Countries and its allies -- a group known as OPEC+ that makes up a bulk of global oil production -- agreed to raise output by 411,000 barrels per day from June during a meeting over the weekend.
The uptick is nearly three times the volume that was initially signaled by OPEC+, and will see key member states Saudi Arabia and Russia increase production.