U.S. Futures, European Markets Rise on Nvidia Led Rally; Trump, Xi Summit Eyed

By Dow Jones Newswires Staff

U.S. futures and European markets were up after the S&P 500 and Nasdaq hit new records Wednesday driven by a tech stock rally led by Nvidia. Bitcoin was also higher, boosted by the U.S. gains.

President Trump landed in China Wednesday for high profile meetings with Chinese leader Xi Jinping where the two are expected to discuss the Iran war and artificial intelligence. Trump's entourage includes Nvidia's Jensen Huang as well as Apple's Tim Cook and Tesla's Elon Musk.

Oil rose as traders await the outcome of talks between Trump and Xi, while treasury yields fell after strong U.S. producer prices data Wednesday. U.K. assets were broadly steady with a potential leadership challenge to Prime Minister Keir Starmer still looming.

--U.S. Futures rose, with the Nasdaq up 0.4%, Dow Jones Industrial Average 0.3% higher and S&P up 0.2%. On Wednesday Nvidia shares rose for the sixth consecutive day with the chip maker becoming the first company to hit a $5.5 trillion market capitalization. Also on Wednesday, the Senate confirmed Trump favorite Kevin Warsh as the Federal Reserve's new chair, replacing Jerome Powell, who will leave the role Friday.

--Asian stocks were broadly lower despite a positive tone from the Trump-Xi summit, where both leaders emphasized cooperation. Japan's Nikkei ended 1.0% lower, while China's Shanghai Composite Index was 1.5% lower and the Chinext and Shenzhen gauges slid over 2%. Hong Kong's Hang Seng Index was flat, with the tech benchmark down 0.1%.

--European indexes gained at the open, with the Europe-wide Stoxx 600 index trading 0.3% higher. The index is benefiting from the technology sector following U.S. markets, which were driven by a tech-stock rally led by Nvidia. In London, Burberry shares are down 4.3% after the luxury group announced earnings and said that Chair Gerry Murphy would be stepping down. 3i is leading the index fallers--down 18%--after reporting weaker-than-expected results from its key investment, Action. London's FTSE 100 index is up 0.3%, Germany's industrial heavy DAX climbs 1%, while France's CAC 40 rises 0.4%.

--The dollar eased slightly after reaching a near two-week high in the previous session following higher-than-expected U.S. wholesale inflation data. Investors are monitoring a meeting between Trump and Xi where they are expected to discuss issues such as trade and the Iran war. Trump said the relationship between the U.S. and China will be "better than ever before" while Xi said the countries should be "partners not rivals." The DXY dollar index fell 0.1% to 98.483 after rising as high as 98.598 Wednesday.

--Treasury yields fell, dropping back from Wednesday's levels when the 10-year yield reached its highest since June last year after strong U.S. producer prices data. A deeper look at the data suggests it might have limited impact on PCE inflation, which is the Federal Reserve's preferred inflation measure, Commerzbank analysts say in a note. Attention now switches to U.S. retail sales and weekly jobless claims data at 1230 GMT, where any weakness could cause yields to fall further. The meeting between Trump and Xi is also in focus while Middle East uncertainty continues. The 10-year Treasury yield fell two basis points to 4.461% after reaching a high of 4.500% on Wednesday, Tradeweb data show.

--Bitcoin rose slightly but stays below $80,000 after falling to a one-week low in the previous session. Higher-than-expected U.S. inflation data for April on Tuesday reduced the prospect of interest-rate cuts by the Federal Reserve, denting risk appetite and boosting the dollar. However, a rally in Nvidia fuelled fresh records for the S&P 500 and Nasdaq overnight as chief executive Huang joined other prominent U.S. companies at a high-stakes China summit. Bitcoin edges up 0.1% to $79,725 after falling as low as $78,728 on Wednesday, LSEG data show.

--Oil prices edged higher, with traders in a wait-and-see mode as they await the outcome of a high-stakes meeting between Trump and Xi. In early European trading, Brent crude rose 0.2% to $105.80 a barrel, while WTI futures were up 0.1% to $96.90 a barrel. "The market could be pinning too much hope on the U.S.-China talks yielding some positive results on Iran," analysts at ING say. Meanwhile, investors are also monitoring the expiry of a U.S. sanctions waiver allowing purchases of Russian oil cargoes through May 16, which could further tighten supply conditions, according to market watchers.

--Gold prices held above $4,700 a troy ounce, but remain pressured by expectations of higher-for-longer interest rates following the latest U.S. inflation data. "Gold extended losses after U.S. wholesale inflation accelerated in April to its fastest pace since 2022, while Treasury yields climbed toward their highest levels since July, weighing on non-yielding assets," says Soojin Kim from MUFG. In early European trading, gold futures in New York were up 0.2% to $4,718 a troy ounce. Meanwhile, silver fell 1.4% to $88.12 an ounce and platinum was down 2.1% to $2,150.60 an ounce.

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(END) Dow Jones Newswires

05-14-26 0413ET