Stock futures fell Monday, the first trading day of June, as global trade tensions increased. S&P 500 futures traded down 0.4%, and Nasdaq-100 futures were 0.5% lower. Futures tied to the Dow Jones Industrial Average declined 123 points, or 0.3%. China pushed back against U.S. accusations that it had violated a temporary trade agreement. Instead, the country blamed Washington for failing to uphold the deal — a sign that negotiations between the world’s two largest economies are deteriorating. Tensions reignited following a brief pause after U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in Geneva and agreed to a 90-day suspension of most tariffs. National Economic Council director Kevin Hassett suggested on Sunday that President Donald Trump and China’s President Xi Jinping could have a conversation about trade as soon as this week. “Conversations between Trump and Xi could prove critical to much needed clarity for the largest economies in the world,” said Jay Woods, chief global strategist at Freedom Capital Markets. “If they get clarity, look for another leg higher in this market and talk of new all-time highs. If this back-and-forth goes on, then expect volatile markets to continue.” Tensions between the U.S. and European Union also heightened after Trump said he would double steel tariffs to 50%. The EU warned that this “undermines” negotiations, with a spokesperson adding: “This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.” On Friday, the S&P 500 closed out the month of May with a more than 6% gain, its best monthly performance since November 2023. The tech-heavy Nasdaq Composite surged more than 9% for the month and the Dow Jones Industrial Average rose about 4%. That said, Morgan Stanley’s Chris Toomey is skeptical about whether May’s market momentum will continue. “We’re probably still range-bound,” the managing director told CNBC’s “Closing Bell” on Friday. “The concern we’ve got is that while I think we’ve taken [out] the worst-case scenario with regards to the ‘liberation day’ [tariffs], we’re in a situation where I think the market’s right now probably pricing in the best-case scenario.” U.S. Treasury yields moved higher as China struck back at the U.S. over alleged Geneva trade deal violations. The 10-year Treasury yield was up more than 1 basis point to 4.434%. The 2-year yield was less than a basis point higher, trading at 3.92%. The 30-year Treasury yield was more than 3 basis points higher at 4.964%. Asia-Pacific markets were mostly lower Monday after President Donald Trump told U.S. steelworkers that he will double tariffs on steel imports to 50%, effective from Wednesday. Japan’s benchmark Nikkei 225 fell 1.30% to close at 37,470.67 while the Topix declined 0.87% to 2,777.29. South Korea’s Kospi was nearly flat to end the trading day at 2,698.97, while the small-cap Kosdaq rose 0.81% to 740.29 ahead of the country’s presidential election on June 3. Australia’s S&P/ASX 200 slipped 0.24% to close at 8,414.1. Hong Kong’s Hang Seng index declined 1.2% while India’s Nifty 50 was down 0.10%. China, Malaysia and New Zealand markets are closed for the holidays. U.S. crude oil futures rose about 4% on Monday after OPEC+ increased production at a steady rate, easing investor fears that the group might boost output even faster. West Texas Intermediate futures rose $2.53, or 4.16%, to $63.32 per barrel. Global benchmark Brent was up $2.34, or 3.73%, at $65.12 per barrel. The eight producers in OPEC+, led by Saudi Arabia, agreed to increase production by 411,000 barrels per day in July, the third consecutive month the group has boosted output at that rate. Gold prices rose nearly 2% to a one-week high on Monday, driven by safe-haven demand as renewed U.S. tariff threats from President Donald Trump and escalating tensions between Russia and Ukraine heightened global trade and geopolitical fears. Spot gold was up 1.9% at $3,352.69 an ounce, after hitting its highest level since May 23, earlier in the session. U.S. gold futures rose 1.9% to $3,377.50. A weaker dollar makes bullion more appealing for other currency holders.