Wall Street pointed toward a higher open on Thursday as investors focused on a highly anticipated meeting between President Donald Trump and Chinese President Xi Jinping on the sidelines of the G20 summit. The summit, taking place in Osaka, Japan, is seen as a potential turning point in the ongoing trade war between the world's two largest economies.
Market Optimism Ahead of Talks
Futures for the Dow Jones Industrial Average rose 0.3%, while S&P 500 and Nasdaq futures also gained about 0.3% each. The cautious optimism comes after weeks of escalating trade tensions, with both sides imposing tariffs on billions of dollars worth of goods. Investors are hoping for a truce or at least a commitment to resume negotiations.
“The market is pricing in a positive outcome, but there’s still a lot of uncertainty,” said Michael Pistillo, a specialist on the New York Stock Exchange. “Any sign of progress could trigger a rally, but failure could lead to a sharp sell-off.”
Key Economic Data
In addition to the summit, traders are digesting a batch of economic reports. Weekly jobless claims came in at 215,000, slightly below expectations, while durable goods orders for May fell 1.3%, reflecting weakness in manufacturing. The final reading of first-quarter GDP is due later Thursday, with economists expecting a 3.1% annualized growth rate.
“The economy remains solid, but trade uncertainty is weighing on business investment,” noted Fred's Demarco, a trader on the NYSE floor. “A deal would be a big boost for sentiment.”
Global Markets React
Asian markets closed mixed, with Japan’s Nikkei 225 edging up 0.1% and Hong Kong’s Hang Seng slipping 0.3%. European markets traded cautiously higher, with the Stoxx Europe 600 up 0.2%. The euro was flat against the dollar, while the yen weakened slightly.
Oil prices stabilized after recent losses, with West Texas Intermediate crude futures at $57.80 a barrel. Gold edged lower to $1,410 an ounce as risk appetite improved.
Corporate News
In corporate news, shares of Micron Technology rose 2% in premarket trading after the chipmaker reported better-than-expected quarterly earnings. Boeing also gained 1% after announcing a new order from an undisclosed customer. On the downside, Walgreens Boots Alliance fell 3% after reporting a drop in quarterly profit.
The Trump-Xi meeting is scheduled for later Thursday, with no set time. Both leaders are expected to discuss trade, intellectual property, and technology transfer issues. A dinner between the two is also planned, which could provide additional opportunities for dialogue.
“The stakes are high,” said Demarco. “We’ve seen this movie before, but maybe this time we get a different ending.”
