U.S. stock futures traded higher in the overnight session late Sunday ahead of a high-stakes summit between President Donald Trump and Chinese President Xi Jinping, expected to take place in Washington.
Dow futures climbed 0.27%, while the S&P 500 gained 0.34% and the Nasdaq-100 edged 0.54% higher as of 10:03 PM EDT.
On Friday, the Dow Jones Industrial Average declined 0.18% at close, while the S&P 500 and Nasdaq-100 climbed 0.17% and 0.67%, respectively.
For the week, the Dow closed down 1.69%, extending its losing streak to three consecutive weeks, while the S&P 500 fell 0.08% and the Nasdaq Composite edged up 0.72%.
Last week, U.S. markets were primarily focused on the Federal Reserve’s 25 basis point benchmark rate hike, lifting rates to a range of 3.75% to 4.00%, its first hike in over three and a half years.
Long-dated Treasury yields climbed higher over the weekend, with the U.S. 10-year Treasury yield trading at 5% and the 30-year yield at 5.328% at the time of writing.
This week, markets are turning their attention to the Trump-Xi summit, where leaders are expected to discuss tariffs, critical minerals, artificial intelligence, and other economic issues, with the existing U.S.-China trade truce set to expire in early November.
U.S. Treasury Secretary Scott Bessent is also expected to meet Chinese Vice Premier He Lifeng ahead of the visit, adding a financial diplomacy dimension to the high-profile week.
Josh Gilbert, lead Asia Pacific analyst for eToro, cautioned in a note reported by Bloomberg: “Don’t expect too many fireworks, though, because the focus is likely to be an extension of the existing trade truce rather than anything groundbreaking.”
The summit is expected to draw prominent technology executives, with Microsoft CEO Satya Nadella, Apple Executive Chairman Tim Cook, Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, and Qualcomm CEO Cristiano Amon reportedly set to attend the White House state dinner for Xi Jinping on September 24.
On the geopolitical front, conflict in the Middle East escalated over the weekend after Iran-backed Houthis said they attacked Saudi Arabia with missiles and drones on Saturday.
Houthi advances along the coast have also positioned the group near the Bab el-Mandeb Strait, strengthening its ability to potentially disrupt or blockade shipping between the Red Sea and Asia.
The U.S. Central Command said on X that oil and gas shipments through the Strait of Hormuz hit a six-month high over the weekend, with thousands of vessels safely transiting the critical waterway.
Brent crude futures expiring in November fell more than 2% to $101.67 a barrel, while WTI crude futures expiring in October were trading at $98.09 per barrel at the time of writing.
Critical Metals Corp. (NASDAQ: CRML) shares jumped more than 34% in the overnight session after President Trump unveiled an agreement granting the U.S. permanent security access to Greenland and greater authority over sensitive foreign investments.
Applied Digital Corp. (NASDAQ: APLD) gained attention after climbing more than 1% overnight, following Wells Fargo’s initiation of coverage with an “Overweight” rating and a $50 price target, citing its investment-grade backlog, power-advantaged footprint, and discount to contracted net asset value.
GameStop Corp. (NYSE: GME) shares were on the retail radar amid bullish catalysts including strong quarterly results, an insider buy from CEO Ryan Cohen, and an endorsement from “Mad Money” host Jim Cramer, with the stock up 0.49% overnight.
Advanced Micro Devices Inc. (NASDAQ: AMD) shares climbed 1.49% overnight following reports that the chipmaker has notified customers of a 10% hike in chip prices beginning in the fourth quarter.
Among ETFs, the SPDR S&P 500 ETF, SPDR Dow Jones Industrial Average ETF Trust, and the Invesco QQQ Trust all climbed in the overnight session, while the iShares 20+ Year Treasury Bond ETF rose 0.42% amid broadly bearish sentiment.
