US Stock Futures Slip as Treasury Yields Climb and Trump-Xi Summit Begins

US Stock Futures Slip as Treasury Yields Climb and Trump-Xi Summit Begins

Published September 24, 2026 · Finance-Solutes.com Research Desk

US stock futures edged lower late on Wednesday as a rebound in Treasury yields weighed on technology shares. Investors are also watching talks between President Donald Trump and Chinese President Xi Jinping, due Thursday in Washington. The benchmark 10-year Treasury yield climbed above 5% this week and touched its highest level since 2007.

As of 8:02 a.m. Vietnam time on Thursday, S&P 500 futures were down 0.1% at 7,765.0. Nasdaq 100 futures also slipped 0.1% to 30,737.75. Dow Jones futures fell 0.13% to 51,803.0. Futures steadied after a negative session on Wall Street, where stronger economic data pushed yields sharply higher.

Investor takeaway: Strong economic data is now a double-edged sword for stocks. It supports earnings, but it also raises the odds of more Federal Reserve rate hikes. The extended US-China trade truce removes one near-term risk. Still, AI chip rules, rare earth exports and oil prices remain open questions.

Wall Street Ends Lower as Bond Yields Surge

All three major US indexes closed lower on Wednesday. The S&P 500 fell 0.75% to 7,706.03. The Nasdaq Composite dropped 1.13% to 26,936.04, pulling back from the record high it reached earlier this week. The Dow Jones Industrial Average lost 0.68% to settle at 51,511.59.

The main trigger was a set of purchasing managers’ index (PMI) readings that came in hotter than expected. September manufacturing activity hit 57 on the S&P Global gauge, well above the 53.7 economists had forecast. Readings above 50 signal expansion, so the data pointed to a resilient US economy.

That strength pushed the 10-year Treasury yield to about 5.14% at its peak, the highest since July 2007. Fed Governor Michael Barr added to the pressure. He said further policy adjustments are likely needed because inflation is not clearly heading back to the 2% target. The Fed already raised rates last week. Traders now see roughly a 70% chance of another 25 basis point hike in October, according to the CME FedWatch Tool.

Technology stocks were hit hardest. Higher yields reduce the present value of future profits, which matters most for fast-growing companies. Investors who had piled into the recent tech rally felt the impact quickly.

Trump-Xi Summit Puts Trade and AI in Focus

President Xi landed in Washington on Wednesday evening, where President Trump welcomed him. He is on a state visit that runs through Friday. The two leaders will hold formal talks on Thursday, with artificial intelligence and trade expected at the top of the agenda.

Ahead of the meeting, Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng. He then told Fox News that both countries agreed to extend their trade truce by two months, to Jan. 10. The truce had been due to expire in November. Bessent said Beijing still needs to fulfill more of its commitments.

The extension was shorter than many had hoped. Some analysts had expected six months or longer. Even so, it keeps the current tariff status quo in place for now.

Markets will also track several other topics during the talks:

• AI safety rules: whether the two leaders can agree on growing calls for stronger safeguards.
• AI chip sales: any discussion of selling more advanced chips to China.
• Rare earths: signals on Chinese exports of critical minerals.
• Farm purchases: possible new commitments to buy US agricultural goods.

Oil Rebounds as Iran Talks Stall

Oil prices recovered on Wednesday, adding to the pressure on stocks. Crude rose almost 2% in choppy trading, with Brent near $100 per barrel. Traders weighed speeches from President Trump and Iranian President Masoud Pezeshkian at the United Nations General Assembly in New York.

Pezeshkian used his address to criticize the US naval blockade of Iranian ports. He also defended Iran’s stance on the Strait of Hormuz. Iran wants to control the waterway and collect fees from ships, while Washington insists it must stay fully open. Before the war, about a fifth of the world’s oil and liquefied natural gas moved through the strait.

Hopes for a diplomatic breakthrough now look overdone. There is still no sign that the standoff at Hormuz is easing. Higher oil prices also feed inflation, which in turn supports the case for tighter Fed policy.

What This Means for Investors

• Rate-sensitive sectors stay exposed. Technology and other growth stocks tend to struggle when the 10-year yield keeps rising.
• Summit headlines can move individual stocks. Semiconductor and AI-related shares may react to any decision on chip exports.
• The trade truce lowers tariff risk for now. The Jan. 10 deadline means the issue will return early next year.
• Energy prices remain a key inflation driver. Crude near $100 can squeeze consumers and transport-heavy sectors while helping energy producers.
• Diversification matters more than prediction. With yields, oil and geopolitics all moving at once, a balanced portfolio is easier to hold than a single-theme bet.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial or investment advice. Market data such as futures levels, bond yields and oil prices change quickly, so always check real-time figures before making any investment decision. For personalized guidance, Finance-Solutes.com’s free courses and expert advisors can help you turn market news into a strategy that fits your own goals.

Source: Investing.com; CNBC; Yahoo Finance; Trading Economics

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