U.S. stock futures rose Monday. Investors now eye a high-stakes Washington summit between President Donald Trump and Chinese President Xi Jinping alongside lingering Middle East tensions.
Financial markets kicked off the week with renewed momentum following a volatile stretch for equities. Stock futures moved higher Monday as investors weighed shifting monetary policy, falling energy costs, and upcoming high-level trade diplomacy according to reporting from the session. The upward push provided a welcome rebound for major averages after a difficult prior week that weighed heavily on Wall Street.
Dow Jones and Major Indexes Rally as Oil and Yields Slide
The Dow Jones Industrial Average jumped 366 points on Monday, reversing course after recording its third consecutive weekly decline. During the previous week, the Dow had slipped about 1.7%. Broader indexes also showed strength as market conditions shifted.
S&P 500 futures gained roughly 0.5%, and Nasdaq 100 futures climbed about 0.7%, while Dow futures added roughly 0.4%. The S&P 500 slipped roughly 0.1% last week, while the Nasdaq Composite gained about 0.7%. Technology leaders saw notable activity during the session. Advanced Micro Devices (AMD), Intel (INTC), Micron Technology (MU), Nvidia (NVDA), and Sandisk (SNDK) emerged as key movers, with chip stocks recovering from earlier weekly weakness.
Washington Summit Between Trump and Xi Takes Center Stage
Attention across global trade desks is zeroing in on Thursday’s planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Washington. China’s Foreign Ministry confirmed that Xi will visit the United States from September 23 through September 25.
Ahead of the gathering, Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng in New York City. Treasury Secretary Scott Bessent stated on social media, “In New York City, Vice Premier He Lifeng and I are continuing our discussions on the U.S.-China economic and trade relationship ahead of @POTUS’ historic summit with President Xi in Washington. These talks help lay the groundwork for President Trump to advance America’s economic…” Trade, tariffs, artificial intelligence, critical minerals and other economic issues are expected to feature in the discussions, and Reuters reported that extending the current trade truce is likely to be one of the main topics. The two officials also discussed a possible artificial intelligence safety notification system between the U.S. and China.
Asian markets also moved higher Monday. MSCI’s Asia-Pacific index excluding Japan gained about 0.9%, while technology shares in South Korea and Taiwan helped lead the advance.
Energy Markets and Middle East Tensions Shape Inflation Outlook
Geopolitical risks in the Middle East remained a primary focal point after Yemen’s Iran-backed Houthis claimed missile and drone attacks on Riyadh over the weekend. Saudi Arabian and other Gulf markets declined Sunday following the attacks.
Despite the geopolitical tensions, oil prices moved lower Monday, providing a stabilizing force for global equities. Brent crude fell around 2%, extending recent declines as markets assessed reports of stronger oil flows from the Gulf and the possible restoration of Saudi supply infrastructure. Lower oil prices provided some relief for equity markets because energy costs have been contributing to inflation concerns, and the Federal Reserve’s outlook remains closely tied to inflation and the direction of oil prices.
Federal Reserve Policy and Elevated Treasury Yields
The broader economic environment continues to reflect the Federal Reserve’s recent monetary tightening. The Federal Reserve raised its benchmark interest rate by 25 basis points last week to a range of 3.75% to 4.00%, marking the central bank’s first rate increase since July 2023.
Treasury yields remain elevated following the move. The 10-year Treasury yield has been trading close to 5% while markets continue to price the possibility of further Fed tightening later this year. Technology shares have held up better than the broader market, with chip stocks recovering after weakness earlier last week. Investors will now watch developments in the Middle East, comments from Federal Reserve officials, and Thursday’s Trump-Xi summit as markets begin a new week.