Futures linked to the Dow Jones Industrial Average (DJIA) rose about 0.7%, while S&P 500 and Nasdaq-100 futures also advanced, indicating a positive start for Wall Street.
The gains come as investors continue to digest last week’s Federal Reserve interest-rate increase. Markets are increasingly weighing the possibility of further tightening by the US central bank, even as higher borrowing costs raise concerns about economic growth and corporate earnings.
Oil prices slide to 11-day low
A decline in crude oil prices provided some relief to sentiment. Oil slipped below the $100-a-barrel mark (lowest in 11 days) amid expectations that Washington and Tehran could reopen diplomatic engagement, easing fears of potential supply disruptions in global energy markets.
The Brent contract for November was at $101.2 a barrel at 1137 GMT, down $2.66, or 2.6%, according to Reuters. The WTI October contract that is expiring on Tuesday fell $2.50, or 2.5%, to $97.80 a barrel. The November contract stood at $93.62.
Trump-Xi summit in focus
Wall Street attention is now turning to Thursday’s Trump-Xi summit, which is expected to be one of the most significant geopolitical events for global markets this quarter. Investors will be watching for signs of progress on extending the tariff truce between the world’s two largest economies, as well as discussions on technology and artificial intelligence cooperation.The meeting carries particular importance for the technology sector, given ongoing tensions surrounding semiconductor exports, AI development and access to critical technologies. Several prominent technology leaders are expected to participate in events linked to the summit, underlining the growing role of AI in US-China relations.The talks also come amid a broader debate within the technology industry over the future development of advanced AI models. Recent comments from industry leaders have reignited discussions about whether companies should slow the pace of frontier AI development to address safety and regulatory concerns.