© Reuters. Traders work on the floor at the NYSE in New York

By Medha Singh and Amy Caren Daniel

(Reuters) – Wall Street was set to post slight losses at the open on Monday as trade disputes and fears of regulatory scrutiny on high-profile companies Alphabet (NASDAQ:) and Amazon weighed on sentiment.

Mexican officials said the country could reach an agreement with the Unites States to resolve a dispute over migration that prompted President Donald Trump to threaten punitive tariffs last week.

“Investors will remain concerned about trade until there is a resolution, particularly the Mexico situation, which is capable of being resolved,” said Rick Meckler, partner, Cherry Lane Investments, New Vernon, New Jersey.

Trump’s surprise threat of tariffs on Mexico and lingering investor concerns around the U.S.-China trade war resulted in Wall Street’s main indexes ending May at least 6% lower, their first monthly decline this year.

Boeing (NYSE:) Co, the largest U.S. exporter to China, dropped 1.1% in premarket trade.

Trade worries sent investors fleeing to the security of government bonds, which pushed yields on U.S. two-year notes toward their biggest two-day fall since 2008, reflecting growing conviction that the Federal Reserve will start cutting interest rates to stave off recession.

Alphabet Inc dropped 3.3% after sources said the U.S. Justice Department is preparing an investigation of the Google-parent to determine whether the company broke antitrust laws in operating its sprawling online businesses.

Amazon.com (NASDAQ:) slipped 0.6% after a report that the e-commerce giant could face heightened antitrust scrutiny under a new agreement between U.S. regulators which puts the company under the watch of the trade commission.

“Big tech has been a favorite of investors and if they decide that risks from antitrust will take a turn for the worst for them then that is going to going to have an impact on the market as a whole,” Meckler added.

At 9:04 a.m. ET, were down 21 points, or 0.08%. were down 2.5 points, or 0.09% and were down 19.5 points, or 0.27%.

FedEx Corp (NYSE:) shares dropped 2.4% after Chinese media reported that Beijing would investigate whether FedEx damaged the legal rights and interests of its clients, after telecoms giant Huawei said parcels intended for it were diverted.

Shares of health insurer Centene (NYSE:) Corp tumbled 8.4% after bigger rival Humana Inc (NYSE:) said it would not make a proposal to combine with the company. Humana shares rose 3.8%.

Cypress Semiconductor Corp surged 26.1% after German chipmaker Infineon Technologies agreed to buy the U.S. peer in a deal valued at 9 billion euros ($10.1 billion), including debt.

On the economic front, the ISM manufacturing survey, due at 10:00 a.m. ET, is likely to show the reading on the index rose to 53 in May from 52.8 a month earlier.

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