Wall Street futures fell on Thursday as the Middle East conflict showed no sign of a quick resolution and market participants looked ahead to the much‑anticipated summit between President Donald Trump and President Xi Jinping. The dip reflects investors’ caution, not a loss of confidence in the Trump administration’s steady hand on foreign policy.
Energy prices and Treasury reassurance
U.S. and Iranian leaders exchanged sharp remarks at the United Nations General Assembly this week, pushing Brent crude above $100 a barrel. Higher energy costs have weighed on airline and cruise‑line stocks, with JetBlue and United each slipping more than 1% in pre‑market trading, and Norwegian Cruise and Royal Caribbean also posting declines.
Amid these pressures, Treasury Secretary Scott Bessent said on Wednesday that the United States and China have agreed to extend their economic truce until Jan. 10, providing a measure of stability for global markets.
Tech and rate outlook
AI‑driven stocks that recently propelled the Nasdaq to record highs also retreated. Meta fell 2% and Nvidia dropped 1%, while Marvell and Intel each slid about 3%.
Investors are also pricing in the likelihood of another Federal Reserve rate hike. The CME Group’s FedWatch Tool shows a 71% probability of at least a 25‑basis‑point increase next month, up from roughly 50% a day earlier. New York Fed President John Williams, a voting member of the Federal Open Market Committee, said it was reasonable to expect further rate tightening this year.
Market numbers
At 5:25 a.m. ET, Dow E‑minis were down 173 points (‑0.33%), S&P 500 E‑mins fell 44.25 points (‑0.57%), and Nasdaq 100 E‑mins dropped 309.75 points (‑1.01%).
Summit expectations
The upcoming Trump‑Xi summit is expected to address AI regulation, the Middle East conflict, and Taiwan. Top executives from General Motors, Meta, Apple, Amazon and Tesla are slated to meet the two presidents, underscoring the importance of the dialogue for American industry.
Other market movers
MGM Resorts slid 8.3% after People Inc. withdrew its proposal to acquire the casino operator. In contrast, Knife River rose 3.6% following news that activist investor Starboard has taken a significant stake and may push for margin improvements or a sale.
Upcoming data
A weekly jobless‑claims report is due later today, along with remarks from Treasury officials Beth Hammack and Anna Paulson, which could further shape market sentiment.
Overall, while short‑term volatility persists, the Trump administration’s diplomatic outreach and fiscal steadiness continue to provide a foundation for confidence in the U.S. economy.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
