Stock futures inch lower to kick off start of the new trading month: Live updates

Stock futures fell on Sunday as Wall Street looks to the start of a new month of trading following a strong performance in May.

S&P 500 futures traded down about 0.3%, along with Nasdaq-100 futures. Futures tied to the Dow Jones Industrial Average also declined 100 points, or 0.2%.

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."

He added: "Everyone's talking about the fact that there's probably going to be 10% tariffs across the board, 30% for China. I think that's kind of baked in."

President Donald Trump's tariffs have been in legal limbo following two key court rulings last week. The U.S. Court of International Trade struck down much of the president's steep levies Wednesday, ordering his administration to stop collecting them. A day later, however, a federal appeals court granted the administration's request to temporarily pause that ruling, effectively reinstating the duties.

Trump's top economic advisors have remained optimistic in the tariffs even with the recent legal challenge, as Commerce Secretary Howard Lutnick said on Fox News over the weekend that the tariffs are "not going away." Additionally, National Economic Council Director Kevin Hassett told ABC News that he's "very confident that the judges will uphold this law."

Hassett also suggested that Trump and China's President Xi Jinping could discuss trade as early as this week, though he said no date for the talks has been set. His comments come as trade tensions between the U.S. and China ramped up last week, with Trump writing in a Truth Social post Friday that China has "TOTALLY VIOLATED ITS AGREEMENT WITH US."

Meanwhile, investors will be eyeing a slew of reports due this week that could provide insight into how tariffs have affected the U.S. economy, including the key May nonfarm payrolls reading on Friday.