Wall Street investors have returned from their Memorial Day long weekend with US-China trade anxiety on their minds.

Weighing on investor sentiment was US President Donald Trump's latest comments about the trade dispute between Washington and Beijing.

On Monday (local time), the US President said he was "not yet ready" to make a deal with China, but he expected one in the future.

However, Mr Trump also said US tariffs on Chinese imports could still "go up very, very substantially, very easily".

Both nations have already imposed hundreds of billions of dollars in tariffs on each other's imports, and market participants were worried further retaliation would lead to a global economic slowdown.

Market snapshot at 7:45am (AEST): ASX SPI futures -0.7pc at 6,441, ASX 200 (Tuesday's close) +0.5pc at 6,484

ASX SPI futures -0.7pc at 6,441, ASX 200 (Tuesday's close) +0.5pc at 6,484 AUD: 69.24 US cents, 54.7 British pence, 62 euro cents, 75.73 Japanese yen, $NZ1.06

AUD: 69.24 US cents, 54.7 British pence, 62 euro cents, 75.73 Japanese yen, $NZ1.06 US: Dow Jones -0.9pc at 25,348, S&P 500 -0.8pc at 2,802, Nasdaq -0.4pc at 7,607

US: Dow Jones -0.9pc at 25,348, S&P 500 -0.8pc at 2,802, Nasdaq -0.4pc at 7,607 Europe: FTSE 100 -0.1pc at 7,269, DAX -0.4pc at 12,027, CAC -0.4pc at 5,313, Euro Stoxx 50 -0.5pc at 3,349

Europe: FTSE 100 -0.1pc at 7,269, DAX -0.4pc at 12,027, CAC -0.4pc at 5,313, Euro Stoxx 50 -0.5pc at 3,349 Commodities: Brent crude flat at $US70.14/barrel, spot gold -0.4pc at $US1,278.80/ounce, iron ore -2.3pc at $US106.11

The Dow Jones index tumbled 238 points, down 0.9 per cent to 25,348.

The broader S&P 500 fell 0.8 per cent, while the tech-heavy Nasdaq slipped 0.4 per cent.

The New York trading day began with solid gains, but fell into the red during the final hour of trade.

"The market is trying to keep this momentum going but there is a lack of upside catalysts and ... I don't know what is going to drive this higher," said Charles Schwab's vice president of trading and derivatives, Randy Frederick.

"Any time the buyers step in, the excitement just kind of wears off and fizzles by the end of the day, and we're seeing that again today."

The US-China trade uncertainty has also pushed investors toward safe-haven assets.

It resulted in benchmark 10-year US Treasury yields — which move inversely to price — dropping to a 19-month low of about 2.26 per cent.

The benchmark S&P 500 index is now down nearly 5 per cent from its closing high set on April 30.

Meanwhile, the Dow Jones Industrial index declined for a fifth straight week on Friday, its longest weekly losing streak in eight years.

ABC/Reuters