U.S. stock futures climbed Monday as a sharp slide in oil prices lifted sentiment ahead of a summit between President Trump and Chinese President Xi Jinping. S&P 500 futures gained 0.7%, while Dow and Nasdaq-100 futures also advanced. The moves follow the Dow's steepest weekly drop since March and come as investors weigh a Fed rate move and Middle East tensions.
S&P 500 futures gain as Wall Street looks past a rough week
S&P 500 futures rose 0.7% Monday, with Dow Jones Industrial Average futures up 407 points, or 0.8%, and Nasdaq-100 futures adding 1.1%.
The gains follow a rough stretch. The Dow shed 1.7% over the prior week, its steepest seven-day decline since March, while the S&P 500 finished roughly 0.1% lower and the Nasdaq bucked the selling with a 0.7% gain. Semiconductor and AI-linked names drove Monday's Nasdaq-100 premarket advance.
Oil's slide removes a key drag on sentiment
A drop in crude prices did much of the work behind Monday's rally. West Texas Intermediate fell more than 3% to $97.09 a barrel, while Brent lost more than 3% to hover near $101, putting it on course for a fourth straight daily decline.
Oil began retreating after Iran-backed Houthi forces claimed a missile and drone strike on Saudi Arabia on Saturday, prompting a U.S. State Department advisory urging Americans to reconsider travel to the Middle East as Washington and Tehran traded escalating threats. Even so, according to CNBC, JPMorgan analysts said oil flows "remain surprisingly strong".
Trump-Xi summit and rate policy loom over trading
Preliminary talks between U.S. and Chinese officials in New York on Sunday centered heavily on artificial intelligence ahead of Xi's visit, with Treasury Secretary Scott Bessent citing discussions on a framework for alerting each side to AI incidents that pose national-security risks. The Trump-Xi summit agenda is expected to span tariffs, critical minerals and AI alongside broader economic concerns.
The talks carry extra weight after the Federal Reserve's first interest rate increase in three years, a move driven by persistent inflation and Treasury yields hovering near 5%. The benchmark 10-year Treasury note settled at 4.957%, down more than 3 basis points Monday.
Source: Quartz
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