U.S. stock index futures declined on Thursday morning as elevated Treasury yields continued to weigh on technology shares, even as President Donald Trump welcomed Chinese President Xi Jinping for bilateral talks in Washington.
S&P 500 futures fell 0.4% to 7,739.75, Nasdaq 100 futures dropped 0.56% to 30,589.75, and Dow Jones futures slipped 0.28% to 51,731.0, as of 02:30 ET.
The sell-off followed Wednesday's session, in which the Nasdaq Composite led declines with a 1.1% slide from record highs reached earlier in the week. The pressure came after the 10-year Treasury yield climbed past 5%, briefly touching its highest level since July 2007. Strong purchasing managers index data further bolstered concerns about the prospect of additional interest rate increases, compounded by hawkish remarks from Federal Reserve Governor Michael Barr.
At the White House, Trump and Xi are set to hold bilateral talks Thursday, with artificial intelligence and trade relations topping the agenda. U.S. Treasury Secretary Scott Bessent met separately with Chinese Vice Premier He Lifeng ahead of the summit. Bessent told Fox News on Wednesday that Washington and Beijing had agreed to extend their trade truce by two months, pushing the deadline into early January.
In corporate news, Meta Platforms unveiled additional features for its Muse AI agent and a range of new physical AI devices, primarily smart glasses, on Wednesday evening. Shares dipped slightly following the announcement.
Oil prices rebounded on geopolitical tension, rising amid a standoff in the Strait of Hormuz. Iranian President Masoud Pezeshkian delivered a defiant address at the United Nations General Assembly in New York, while reports indicated the U.S. rejected Iran's latest proposal to reopen the strategic waterway. U.S. officials also downplayed recent dialogue with Tehran.
