US equity futures climb as oil prices slide ahead of Trump-Xi summit

US equity futures pushed higher as two of the market’s favorite ingredients showed up at the same time: cheaper oil and the faint hope that the world’s two largest economies might keep playing nice.

Dow Jones Industrial Average futures climbed roughly 0.6-0.8%, S&P 500 futures gained 0.6-0.7%, and the Nasdaq-100 led the pack with an advance of about 1.1%. The catalyst was a one-two punch of falling crude prices and upbeat signals from officials ahead of a summit between President Donald Trump and Chinese President Xi Jinping, scheduled for September 24 in Washington.

Oil’s retreat is doing the heavy lifting

West Texas Intermediate crude dropped more than 3%, sliding to around $97 per barrel. Brent crude fell by 2-3%, approaching $101 per barrel.

The decline in oil was partly driven by renewed hopes for diplomatic progress in the Middle East. Anticipated discussions between Trump and Iranian leaders on the sidelines of the UN General Assembly raised the prospect, however slim, of reduced supply disruption risk in the region.

The summit everyone is watching, but nobody expects fireworks from

Xi Jinping is set to visit the White House on September 24, marking his first trip there in roughly a decade.

Preparatory talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng took place on September 20, and officials from both sides described the conversations as constructive.

The core agenda item is an extension of the trade truce established the previous year, which is currently set to expire in November 2026. Artificial intelligence regulations and non-sensitive trade matters are also expected to come up. But analysts aren’t expecting any grand bargain. The meeting is widely viewed as an opportunity to keep existing agreements intact rather than break new ground.

Lingering friction points remain very real. Taiwan continues to be a source of tension, and potential technology-related tariffs hover over the relationship.

Broader market context and what to watch

The equity rally is unfolding against a backdrop that isn’t entirely friendly. Treasury yields remain close to 5%, a level that typically acts as a gravitational force pulling capital away from stocks and into bonds.

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