US stock futures traded flat as investors faced the tough reality that despite trade tensions easing President Trump's tariffs still stand to deal a blow to the economy.

Wall Street saw one of its most brutal selling sessions overnight in over a month as rising deficit worries led to a spike in bond yields, which in turn hit sentiment around equities. The run-up seen from lower levels also was a big factor in investors choosing to take money off the table as uncertainties rose.

Stock markets were set for a moody Monday after Moody’s downgrade of its rating on U.S. sovereign debt the previous week. Dow Jones Industrial Average futures were down 350 points, or 0.8%. S&P 500 futures were falling 1.