Key Takeaways

• Futures climb: Dow futures rose 396 points (+0.8%), S&P 500 futures gained 0.3%, and Nasdaq 100 futures added 0.3%.
• Records keep falling: The S&P 500 notched a fresh all-time peak Wednesday, while the Nasdaq Composite spiked 1.2%.
• Trump-Xi friendly tone: Trump hailed “extremely positive and constructive discussions” with Xi at the Beijing state banquet.
• Xi visit invitation: Trump invited the Chinese president to visit the U.S. in September.
• Xi’s call for partnership: The Chinese leader stressed the two nations should “become partners, not rivals.”
• H200 chip bombshell: The U.S. has cleared about 10 Chinese companies to purchase Nvidia’s second-most powerful AI chip — though no deliveries yet.
• Huang on the ground: Nvidia CEO Jensen Huang is accompanying Trump, raising hopes for an H200 sales breakthrough.
• Boeing orders coming: Treasury Secretary Bessent expects an announcement on large Chinese orders for Boeing aircraft.
• PPI shock shrugged off: Hotter-than-expected producer prices may cool once an Iran deal is reached, per Vital Knowledge.
• Warsh confirmed: The U.S. Senate confirmed Kevin Warsh as Fed Chair, replacing Jerome Powell.
• Cisco’s AI overhaul: Shares soared premarket after the firm announced 4,000 job cuts (5% of workforce) and a $1 billion charge.
• Oil treads water: Brent crude held above $105 per barrel, still well above the pre-war level of $70.
• Hormuz remains shut: The vital waterway carrying a fifth of global oil flows is still effectively closed.

U.S. stock futures pointed higher on Thursday, as investors kept tabs on ongoing enthusiasm around artificial intelligence as well as announcements out of a much-anticipated summit between U.S. and Chinese leaders.

By 07:13 ET (11:13 GMT), the Dow futures contract was higher by 396 points, or 0.8%, S&P 500 futures ticked up by 25 points, or 0.3%, and Nasdaq 100 futures climbed by 93 points, or 0.3%.

The benchmark S&P 500 notched a fresh all-time peak on Wednesday, while the tech-heavy Nasdaq Composite spiked by 1.2%. The blue-chip Dow Jones Industrial Average was the laggard, dipping by 0.1%.

The U.S. has cleared about 10 Chinese companies to purchase Nvidia’s second-most powerful AI chip — the H200 — although a delivery has yet to be made, Reuters reported, citing people familiar with the matter. Nvidia CEO Jensen Huang is accompanying Trump to China, raising expectations that a breakthrough could be reached to unlock sales of the H200 in the country.

Analysts at Vital Knowledge noted that while many chipmaking stocks climbed following news that Huang was joining Trump on his trip to China, software and services were “not invited to the latest tech bacchanalia.” They added that underlying price action “wasn’t nearly as robust,” highlighting underperformance in the equal-weight S&P index.

“While there wasn’t a single clear catalyst, positive sentiment around the tech mega caps was a dominant theme,” analysts at Deutsche Bank said in a research note. “Obviously the world awaits news from the first Trump/Xi meeting today.”

Sentiment also appeared to shrug off hotter-than-expected U.S. producer price index data — the second set of upside inflation figures in as many days. Analysts at Vital Knowledge suggested that some market observers see the rise in PPI as a function of the Iran war, meaning that readings may cool once a deal is reached to end the conflict.

Trump Hails “Constructive” Talks with China’s Xi

U.S. President Donald Trump hailed “extremely positive and constructive discussions” with Chinese counterpart Xi Jinping during a high-stakes trip to China on Thursday.

Speaking at a state banquet in Beijing, Trump described Xi as a “friend” and his welcome in China as “magnificent.” Talks so far between the two leaders have been “all good” for both countries, Trump said, inviting Xi to visit the U.S. in September.

“We have a chance to create a future of greater cooperation and prosperity,” Trump said.

Xi, for his part, said he had an “in-depth exchange of views” with Trump, stressing that the two nations should “become partners, not rivals” — although he noted that only through “mutual respect” can these ties be stable.

Neither Trump nor Xi entered into specifics around their conversations, which are expected to revolve around major issues like trade, Taiwan, and artificial intelligence.

U.S. Treasury Secretary Scott Bessent told CNBC that he expected an announcement about large Chinese orders for Boeing’s aircraft during Trump’s visit. Shares of Boeing were higher following the comments.

H200 Chip Breakthrough on the Horizon

The U.S. has cleared about 10 Chinese companies to purchase Nvidia’s second-most powerful AI chip, the H200, although a delivery has yet to be made, Reuters reported, citing people familiar with the matter. Nvidia CEO Jensen Huang is accompanying Trump to China, raising expectations that a breakthrough could be reached to unlock sales of the H200 in the country.

Bessent said the Reuters report was “news to me” and the “back and forth” on the H200 was a “Commerce Department function.” Shares of Nvidia edged up premarket.

Iran War and Fed Transition in Background

While the leaders and top business executives like Huang and Tesla CEO Elon Musk gather in China, the world’s economy faces a murky outlook due to the continued shuttering of the Strait of Hormuz — a vital waterway off Iran’s southern coast through which roughly a fifth of global oil flows.

Oil prices have oscillated around the flatline. Brent crude futures, the global oil benchmark, were last floating above $105 a barrel, compared with a pre-war level of roughly $70 a barrel. This spike has fueled worries over an inflationary surge in countries around the world — a trend underlined by consumer and producer price data out of the U.S. this week.

The U.S. Senate confirmed Kevin Warsh as chair of the Federal Reserve on Wednesday, elevating him to the helm of the central bank just as policymakers are grappling with price pressures that may make it harder to justify delivering rapid and aggressive rate cuts frequently demanded by Trump. Warsh will replace outgoing chair Jerome Powell.

Cisco’s AI Overhaul Sends Shares Soaring

In individual stocks, shares of Cisco Systems soared premarket after the networking gear provider unveiled a sweeping restructuring plan centered around AI.

The company announced a push to reduce its overall workforce by roughly 4,000 jobs, or around 5% of its workforce. It flagged a $1 billion charge due to severance and other costs.

Cisco said that it expects to recognize approximately $450 million of these charges in the fourth quarter of fiscal 2026, with the remaining amount to be recognized during fiscal 2027. The company described the charges as primarily cash-based.

CEO Chuck Robbins told analysts in a post-earnings call that the firm does not “always have the exact resources that we need going forward in the right places,” adding that the overhaul is more about this reallocation of resources “versus savings.”