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US stock market futures rise: Dow, S&P 500, Nasdaq gain as oil falls and Trump-Xi talks loom
US stock market futures rise as Dow, S&P 500 and Nasdaq futures gain, while investors track oil prices, Fed rates, AI concerns and Trump-Xi talks.
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US stock market futures moved higher on Monday as investors watched falling oil prices and continued to look at the Federal Reserve’s latest interest-rate hike and global tensions.
Dow Jones futures rose 0.5% in early trading. This came after the Dow fell for the third week in a row last week.
S&P 500 futures also gained 0.5%, pointing to a small rise in the broader US stock market when regular trading starts.
Nasdaq-100 futures climbed 0.8%. This made technology stocks the strongest performer among the three major US stock futures in early trading.
Oil prices fall below $100
The early stock market gains came as oil prices fell below $100 a barrel. Lower oil prices can help reduce inflation worries. This is because expensive oil can make fuel, goods and other products more costly for consumers and businesses.
Hopes for new US-Iran talks also helped push oil prices lower. Investors are closely watching the situation because better US-Iran relations could reduce pressure on global energy markets, according to Yahoo Finance.
Fed rate hike keeps investors cautious
Despite the rise in futures, investors remain cautious. Higher bond yields, Middle East tensions and concerns about the AI boom have created fresh uncertainty for stocks. The Federal Reserve’s latest rate decision is also a major focus.
The Fed raised interest rates last week, and traders have been increasing their expectations for additional rate hikes. Higher interest rates can create pressure on stocks because borrowing becomes more expensive and investors may demand higher returns from riskier assets.
The US stock market has still managed to rise through much of September despite these concerns. Investors have continued buying stocks even as several risks have emerged. The economic calendar is relatively light this week, meaning investors may have fewer major US economic reports to react to. Because of that, one of the biggest market events this week will be the meeting between US President Donald Trump and Chinese President Xi Jinping on Thursday.
Trump-Xi meeting in focus
The Trump-Xi summit is expected to focus on US-China trade relations, including efforts to extend the current tariff truce. The two leaders are also expected to discuss cooperation on artificial intelligence, making the meeting particularly important for major technology companies.
Several major AI and technology executives are expected to attend a dinner with Xi. The group includes Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, former Apple CEO Tim Cook, Qualcomm CEO Cristiano Amon and Microsoft CEO Satya Nadella.
The AI discussion comes as the technology industry is facing a wider debate over how quickly companies should develop increasingly powerful AI models. The debate intensified after Anthropic CEO Dario Amodei published an essay questioning how quickly frontier AI companies should continue developing advanced AI models.
Technology stocks also moved tentatively higher in both the US and Asian markets on Monday. The gains came after Treasury Secretary Scott Bessent described preliminary US-China talks over the weekend as “very successful.” Bessent has also proposed creating a US-China dialogue focused on artificial intelligence, adding another potential area of cooperation between the two countries, according to Yahoo Finance.
Also read: Buying a home in 2026? What US buyers should know about mortgage rates and loan costs
Investors will therefore be watching the US-China summit closely this week, particularly for developments on tariffs, AI cooperation and relations between the world's two largest economies.
Paramount-Warner Bros. Discovery deal also in focus
Paramount is also nearing a possible settlement with state attorneys general over its proposed acquisition of Warner Bros. Discover. The settlement talks involve an antitrust lawsuit that is currently blocking the deal. CNN is owned by Warner Bros. Discovery.
The lawsuit was brought by a coalition of 12 Democratic-led states about two months ago, but the settlement discussions have created disagreements within the group. California Attorney General Rob Bonta, who has been leading the coalition, has pushed in recent days to reach a settlement with Paramount. But not all states involved in the lawsuit have agreed to the proposed terms.
New York Attorney General Letitia James has opposed the current deal terms, according to a person familiar with the matter. She is seeking additional protections for workers. Connecticut and at least two other states also have concerns about the proposed settlement. These states are seeking additional remedies from Paramount before agreeing to the deal, CNN reported.
The Paramount situation could remain important for investors watching the media, technology and entertainment sectors. At the same time, markets are also focused on interest rates, oil prices and the Trump-Xi meeting.
For Monday’s market opening, US stock futures were slightly higher. Dow futures rose 0.5%, S&P 500 futures gained 0.5% and Nasdaq-100 futures climbed 0.8%.
The key question is whether these gains continue after regular trading starts. Investors will be watching the Fed’s interest-rate policy, oil prices, Middle East tensions, AI concerns and US-China relations.
