U.S. stocks-Wall St futures steady with focus on Mideast talks, US-China summit

AI spending and higher energy costs from the US-Iran war have had policymakers at the Federal Reserve flag the need to keep interest rates restrictive, following last week's decision to increase borrowing costs.

S&P Global's September Purchasing Managers Index is expected later in the day, with economists polled by Reuters anticipating data to show business activity stayed in expansion territory — above the 50 mark.

Fed Governor Michael Barr is expected to speak later in the day and his remarks will be scrutinized for thoughts on policy outlook. Traders are now pricing in a coin toss of a chance that interest rates could be hiked by at least 25 basis points next month, the CME Group's FedWatch Tool showed.