Chip Giants Tread Carefully Amid U.S.-China Trade Tensions

Wall Street futures indicated a slight upward trend on Monday as investors prepared for a bustling week. This comes amidst a backdrop of declining shares in major semiconductor firms, as a crucial U.S.-China trade policy deadline looms. Nvidia slipped 0.6% and AMD lost 1.6% in premarket trading due to tariff concerns.

Sources revealed that companies agreed to allocate 15% of their advanced chip sales revenue in China to the U.S. government. This news follows limited approvals for the sale of Nvidia's H20 chips. The recent trade deal developments might strain relations between Washington and Beijing, as the agreement is set to expire.

In broader market movements, Dow, S&P 500, and Nasdaq futures all advanced slightly. Investor optimism was bolstered by anticipated shifts in Federal Reserve policy, influenced by labor market data and a mixed earnings season. Additionally, geopolitical tensions, including the upcoming Trump-Putin talks, could significantly impact global economic dynamics.

(With inputs from agencies.)