Wall Street mixed early and oil prices steady as Trump arrives in China to meet with Xi

Wall Street futures opened mixed on Wednesday, with the S&P 500 rising 0.2% and the Dow Jones Industrial Average declining 0.3%. The Nasdaq, heavily weighted toward technology, jumped 0.7%, led by rebounds in Intel (up 3.1%) and Micron (up over 5%), which had both lost significant ground the prior day. Qualcomm also recovered, gaining 4% after an 11.5% drop on Tuesday. The AI-driven surge in chipmakers’ shares has driven Intel’s stock up over 200% and Micron’s up more than 100% this year. Meanwhile, oil prices fluctuated amid lingering uncertainty over a potential U.S.-Iran diplomatic breakthrough. Brent crude, the international benchmark, fell to $101.72 per barrel, while U.S. crude slipped to $107.60. Prices remain elevated since the U.S. and Israel’s strikes on Iran disrupted shipping through the Strait of Hormuz, trapping tankers in the Persian Gulf. Before the conflict, Brent crude traded around $70 per barrel, but the war has since pushed inflation higher in the U.S., worsening economic expectations. The Federal Reserve has paused interest rate cuts this year, monitoring inflation risks tied to the Iran war and Trump’s tariffs. Traders now anticipate a greater-than-30% chance of a rate hike by December, which could dampen stock prices and economic growth. Global markets reacted cautiously: France’s CAC 40 rose 0.4%, Germany’s DAX gained 0.6%, and Britain’s FTSE 100 saw minimal change. In Asia, Japan’s Nikkei 225 climbed 0.8%, while South Korea’s Kospi surged 2.6% after earlier losses linked to potential AI profit redistribution plans. Australia’s S&P/ASX 200 fell 0.5%, and Hong Kong’s Hang Seng rose 0.2%, with China’s Shanghai Composite gaining 0.7%. U.S. President Donald Trump arrived in Beijing for a meeting with Chinese President Xi Jinping, with discussions expected to cover trade, AI, and Iran. Accompanying Trump are executives from major U.S. companies, including Tesla CEO Elon Musk and Nvidia CEO Jensen Huang, signaling a focus on tech and economic ties. Analysts noted that corporate earnings and AI momentum are currently stabilizing markets, though broader economic risks persist due to geopolitical tensions and inflation pressures.