Markets Hold Steady Ahead of U.S.-China Trade Talks

Global markets entered a holding pattern on Monday as investors awaited the outcome of high-stakes trade discussions between the U.S. and China in London. The pause reflects broader uncertainty, with cryptocurrencies, equities, and commodities all showing minimal movement.

Treasury yields edged lower in early trading, signaling risk aversion. The 10-year note dipped to 4.50%, while the 2-year yield fell 3 basis points to 4.01%. Asian markets bucked the trend with modest gains, though U.S. futures pointed to a subdued open.

The S&P 500's proximity to record highs contrasts with trader caution. Last week's rally pushed the index above 6,000 for the first time since February, now sitting within 3% of its all-time peak. Market participants appear content to wait for clearer signals from both macroeconomic data and geopolitical developments.