Nasdaq Futures Up 1.1%; Trump-Xi Summit Lands Thursday
Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng in New York on Sunday for roughly eight hours. His word on the way out was "very successful."
Artificial intelligence, tariffs and rare earths were on the table. U.S. Trade Representative Jamieson Greer sat alongside Bessent.
The two sides discussed standing up a "U.S.-China AI Dialogue." Washington's proposal is a mutual notification mechanism for AI-related incidents.
The meeting was groundwork for the Trump-Xi summit at the White House on Thursday.
Asian equities opened the week higher and U.S. futures followed. The gain is not evenly spread: Nasdaq 100 futures are up about half again as much as S&P 500 futures, and chip stocks are carrying the move.
The market did not price this as a tariff story. It priced it as a chip export story.
The second item is oil. Brent fell to $100.47, down 3.3% on the day. Friday's close was $103.87.
The driver is diplomacy, not supply: expectations that U.S.-Iran talks may resume.
Cheaper crude carried into the bond market. The 10-year Treasury yield eased to 4.95%, about 4 basis points below Friday's close. The yield traded above 5% on Friday.