U.S. stock futures dropped Monday after China took a series of steps pointing to further tensions between the world’s top two economies.

E-mini S&P 500 futures
ES00,
-0.19%

slipped 0.3%, and Nasdaq 100 futures
NQ00,
-0.07%

dropped 0.2%. The futures on the Dow industrials
YM00,
-0.30%

fell 175 points.

The decline came after a solid week for U.S. benchmarks, in which the S&P 500
SPX,
+1.01%

rose 2% to finish at its 40th record close of 2021, and the tech-heavy Nasdaq Composite
COMP,
+1.04%

rose 2.8% ahead of earnings from major tech companies including Alphabet, Amazon, Apple, Facebook and Microsoft.

The U.S. earnings calendar includes electric-vehicle maker Tesla
TSLA,
-0.91%
,
which reports after the close on Monday. This week also will see the latest Federal Reserve interest-rate decision and the gross domestic product report for the second quarter.

The major markets action on Monday was tied to China, as the Hang Seng
HSI,
-4.13%

skidded over 4%, following a crackdown both on Tencent’s music licensing and the entire tutoring industry. In premarket trade, Tencent Music Entertainment
TME,
-6.91%

shares dropped 14% after China ordered the company to end exclusive contracts with music copyright holders.

Hong Kong-listed education stocks skidded after educational training institutions were banned from raising money in the stock market and foreign capital cannot invest. The crackdown slammed U.S.-listed Chinese education stocks on Friday.

The crackdown came as China blamed the U.S. for a stalemate in bilateral relations as high-level talks began in the Chinese city of Tianjin.

Bitcoin
BTCUSD,
+10.72%

jumped Monday after Amazon ran an advertisement looking for an individual to lead the retailer’s cryptocurrencies effort. A separate report said Amazon was looking to start accepting bitcoin for payment by the end of the year.

A long-awaited bipartisan deal on U.S. infrastructure could be reached Monday.

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