U.S. stock index futures rise as focus stays on China summit, Iran escalation

U.S. stock index futures climbed on Sunday evening, supported by optimism surrounding a forthcoming summit between President Donald Trump and China's Xi Jinping, scheduled for Washington this week.

However, the advance in futures was tempered by caution over possible escalation in the Middle East conflict after additional strikes over the weekend.

By 19:20 ET (23:20 GMT), S&P 500 Futures were up 0.25% at 7,732.0 points. Nasdaq 100 Futures gained 0.33% to 30,015.75 points, while Dow Jones Futures added 0.23% to 52,199.0 points.

The rise in futures followed a slightly positive Friday session on Wall Street, in which technology stocks—particularly chipmakers—recovered some ground after suffering steep losses early last week.

Over the weekend, a Wall Street Journal report indicated that artificial intelligence giant Anthropic had postponed its planned initial public offering to November from October.

The postponement is expected to allow the company time to release its third-quarter financials, which are anticipated to demonstrate resilience despite mounting competition from rival OpenAI.

Earlier reports stated that Anthropic will pursue a $2 trillion valuation. In separate news, Reuters reported on Sunday that the company plans to launch a new model before its IPO, likely to compete with OpenAI's Astra model.

Trade talks commence ahead of Trump-Xi summit

Markets drew encouragement from U.S. officials launching trade discussions with China ahead of a summit between the two nations later this week.

Treasury Secretary Scott Bessent said on Sunday that he is meeting Chinese Vice Premier He Lifeng in New York City prior to the summit, striking a positive tone for the forthcoming dialogue.

Trump and Xi are scheduled to meet in Washington on Thursday, which would be the Chinese president's first state visit during Trump's second term. The U.S. president had traveled to Beijing earlier this year.

The summit takes place as trade relations between the world's largest economies remain strained, and Trump and Xi are also expected to discuss AI developments and regulation during their talks this week.

Washington's trade tariffs on China are likewise poised to be a key topic, as a trade truce between the two countries is set to lapse in early November.

U.S. and Iran trade threats amid Houthi escalation

Over the weekend, the U.S. and Iran exchanged threats after Yemen's Iran-backed Houthis intensified their offensive against Saudi Arabia.

U.S. President Donald Trump cautioned that Iran would face severe economic and political repercussions if it failed to agree to a deal with Washington, while Tehran warned that any new U.S. attacks would provoke sustained retaliation.

These threats followed missile and drone strikes by the Houthis on Riyadh over the weekend, as the group continued its offensive against Saudi Arabia and shipping in the Bab el-Mandeb strait.

Oil prices were volatile on Sunday evening in the wake of the latest strikes.