WASHINGTON (dpa-AFX) - Following the steep drop seen last week, stocks are likely to see some further downside in early trading on Monday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 54 points.
Trade concerns may continue to weigh on Wall Street after an official document from the Chinese government blamed the U.S. for the escalating trade dispute between the world's two largest economies.
The white paper, issued by China's State Council Information Office, argued the U.S. is 'solely responsible' for the collapse of trade talks.
China accused President Donald Trump's administration of continually changing its demands, arguing the setbacks in the talks were all the result of 'U.S. breach of consensus and commitments, and backtracking.'
At a press conference in Beijing on Sunday, Chinese Vice Commerce Minister Wang Shouwen denied Trump's claims that China had been the side seeking to renegotiate a nearly completed agreement.
'Nothing is agreed until everything is agreed,' Wang said, noting that China remains willing to resolve the trade dispute but only with an agreement that benefits both countries.
Wang stressed China will not give ground on issues of principle, calling on the U.S. to meet China half-way, uphold the spirit of mutual respect, equality and mutual benefit, and jointly promote the stable and healthy development of bilateral economic and trade relations.
'Negotiations will get nowhere if one side tries to coerce the other or if only one party will benefit from the outcomes,' the white paper said.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on activity in the manufacturing sector in the month of May.
The ISM's purchasing managers index is expected to inch up to 53.0 in May after dropping to 52.8 in April, with a reading above 50 indicating growth in the sector.
The Commerce Department is also due to release its report on construction spending in the month of April. Construction spending is expected to rise by 0.3 percent in April after slumping by 0.9 percent in March.
After ending Thursday's choppy trading session modestly higher, stocks showed a substantial move back to the downside during trading on Friday. With the sell-off on the day, the Dow dropped to a four-month closing low, while the Nasdaq and the S&P 500 hit their lowest closing levels in well over two months.
The major averages ended the session just off their worst levels of the day. The Dow tumbled 354.84 points or 1.4 percent to 24,815.04, the Nasdaq plunged 114.57 points or 1.5 percent to 7,453.15 and the S&P 500 slumped 36.80 points or 1.3 percent to 2,752.06.
With the steep losses on the day, the major averages also moved sharply lower for the holiday-shortened week. The Dow showed a 3 percent nosedive, while the Nasdaq and the S&P 500 plummeted by 2.4 percent and 2.6 percent, respectively.
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