Wall St futures retreat as oil gains on Mideast uncertainty, eyes on Trump-Xi talks
SPY•U.S. stock futures fell as oil rose above $100 a barrel amid Middle East uncertainty and investors looked ahead to Trump-Xi talks. Dow futures were down 0.29%, S&P 500 futures 0.51% and Nasdaq 100 futures 0.91%.
1. Futures fall
Wall Street futures declined as the Middle East conflict remained unresolved and investors awaited a summit between Presidents Donald Trump and Xi Jinping. Brent crude moved back above $100 a barrel after the two countries’ leaders exchanged barbs at the UN General Assembly; a potential U.S. diesel export ban also weighed on sentiment.
2. Stocks and rates
Airline and cruise operator shares edged lower, while AI-related stocks also declined. Meta and Nvidia fell 1.9% and 1%, respectively, and Marvell and Intel slid about 3% each. The 30-year Treasury yield reached its highest level since 2004. Markets priced in a 71% chance of a Federal Reserve rate increase of at least 25 basis points next month, up from about 50% a day earlier; New York Fed President John Williams said another rate hike this year remained reasonable.
3. Summit and company moves
Investors were watching for discussions on AI regulation, the Middle East and Taiwan at the Trump-Xi summit. Treasury Secretary Scott Bessent said the two countries agreed to extend their truce until January 10. MGM Resorts fell 9.3% after Barry Diller’s People withdrew its buyout proposal; Knife River rose 5% after Starboard disclosed a significant stake and plans to push for improved margins or a sale. Darden Restaurants dropped 5.5% after missing first-quarter sales and profit estimates.
