U.S. stock futures fell Thursday as the unresolved Middle East conflict pushed Brent above $100 a barrel and investors awaited Donald Trump’s summit with Xi Jinping. At 5:25 a.m. ET, Nasdaq 100 futures were down 1.01%, S&P 500 futures 0.57% and Dow futures 0.33%.
The 30-year Treasury yield reached its highest level since 2004 as investors priced in the likelihood of a prolonged war. Higher energy costs and data suggesting strong business activity lifted market-implied odds of a Federal Reserve rate increase of at least 0.25 percentage point next month to 71%, from about 50% a day earlier. New York Fed President John Williams said rates might need to rise again this year.
The summit is expected to cover AI regulation, the Middle East conflict and Taiwan; executives from General Motors, Meta, Apple, Amazon and Tesla are also expected to meet Trump and Xi. Treasury Secretary Scott Bessent said the United States and China had agreed to extend their economic truce until Jan. 10.
