Global markets opened the week on a positive note. U.S. stock futures climbed early Monday, with S&P 500 futures up about 0.66 percent, Nasdaq-100 futures up around 1.04 percent, and Dow futures up roughly 0.72 percent, as investors grew more optimistic ahead of an anticipated summit between President Trump and China's Xi Jinping.
The rally followed a rough week for U.S. stocks. The Dow Jones Industrial Average fell 1.7 percent last week, its worst weekly performance since March and its third straight losing week, while the S&P 500 slipped about 0.1 percent. Only the technology-heavy Nasdaq managed a gain, up 0.7 percent, as investors weighed the effects of a Federal Reserve interest rate hike delivered last week alongside geopolitical uncertainty tied to the weekend's Middle East attack.
Ahead of the anticipated Trump-Xi meeting, Chinese Vice Premier He Lifeng met with U.S. Treasury Secretary Scott Bessent in New York on Sunday, and early characterizations of the talks described them as constructive on both artificial intelligence and trade matters. That helped lift sentiment further, with technology stocks leading gains across global regions.
Oil provided another tailwind. Brent crude fell for a fourth consecutive day, its longest losing streak in three months, as traders weighed improving supply from Saudi Arabia and renewed hope for diplomatic progress in the standoff with Iran. Treasuries also climbed across the curve, with European bonds outperforming, while the dollar traded roughly flat. In Asia, South Korea's Kospi index rose 1.65 percent.
Watch for confirmation of a date and agenda for the Trump-Xi summit, and for how markets react if Middle East tensions escalate further.
Why are markets rallying today?
Investors are optimistic ahead of an anticipated summit between President Trump and China's Xi Jinping, and falling oil prices are also helping sentiment.
What happened to stocks last week?
The Dow posted its third straight losing week, falling 1.7 percent, its worst weekly performance since March, as investors digested a Federal Reserve rate hike.