US equity futures pointed sharply lower Friday morning as traders digested an underwhelming conclusion to the two-day Beijing summit between President Trump and Chinese President Xi Jinping. Risk-off flows hit tech megacaps and precious metals while crude oil extended gains.
The premarket moves suggest a retracement from Thursday's record run, when the the S&P 500 climbed 0.77% to 7,501.24, and the Nasdaq gained 0.88% to 26,635.22, both scoring fresh all-time highs. The blue-chip Dow Jones Industrial Average jumped 370 points to 50,063.46, although ending below its early February peak.
Pre-Market Snapshot — 7:00 AM ET
- S&P 500 Futures: 7,461.25 (-0.85%)
- Dow Futures: 49,916.00 (-0.47%)
- Nasdaq-100 Futures: 29,317.50 (-1.25%)
- Russell 2000 Futures: 2,843.40 (-0.91%)
- VIX: 18.72 (+8.46%)
- WTI Crude Futures: $99.43 (+2.59%)
- Gold Futures: $4,570.30 (-2.45%)
- EUR/USD: 1.1643 (-0.22%)
- Bitcoin (USD): $80,631.98 (+1.79%)
Summit Fallout Dents Megacap Tech
Trump and Xi agreed that the Strait of Hormuz must remain open, according to a White House readout — but the deliverables from the Beijing meeting fell well short of trader expectations after a week of speculation.
Traders also expressed uneasiness over stretched tech valuations heading into the open. The pullback follows a sharp run-up: Nvidia jumped 4.4% Thursday, extending its monthly rally to 15% after the U.S. cleared 10 Chinese firms to receive H200 chips, while Cisco Systems surged 13.4% after raising its revenue and earnings outlook. The S&P 500 is headed for its seventh straight week of gains, raising the bar for any incremental positive catalyst.
Asia Routed, Led by Korea and Japan
Overnight in Asia, equity benchmarks sold off broadly as regional traders priced in the same summit disappointment. South Korea's Kospi gave up gains to fall more than 6%, retreating from a fresh record high, dragged lower by heavyweight tech stocks.
- Japan's Nikkei 225 declined 2% to 61,409.29; Topix lost 0.39% to 3,863.97
- Australia's S&P/ASX 200 slid 0.11% to 8,630.8
- Hong Kong's Hang Seng fell 1.62%; Mainland China's CSI 300 dropped 1.12% to 4,859.59
- Samsung Electronics fell more than 8% after its labor union announced it would proceed with a planned 18-day strike starting May 21, involving more than 45,000 workers; the union said it was willing to return to negotiations after June 7
Commodities: Crude Jumps on China Oil Pledge; Precious Metals Dumped
WTI crude surged above $100 a barrel in the European session after President Trump said China has agreed to purchase American oil following the Beijing talks. The commodity has since pared its losses and trades under the psychological level, although with strong gains. Energy strength also reflects lingering Middle East risk tied to Iran and the Strait of Hormuz.
Precious metals are seeing aggressive liquidation. Gold futures fell 2.50%, while silver dropped over 5% to $79.07. The silver move has deepened into pre-market US hours, with the futures tied to the precious metal now off more than 7%.
FX and Rates: Dollar Firm, Yields Ease at the Long End
The dollar is broadly bid heading into the cash open, with EUR/USD retreating 0.20%, GBP/USD at 1.3378 (-0.19%), and USD/JPY ticking up. The 10-year Treasury yield is hovering near 4.46%, modestly lower in the morning but still close to recent highs.
On Deck for the US Session
- April industrial production and capacity utilization, New York regional May manufacturing PMI
- Summit reaction trade — any further White House readouts from the conclusion of the Trump-Xi Beijing meeting
- Middle East headlines — continued monitoring of Iran and Strait of Hormuz developments
- Position-squaring into the weekend after seven consecutive weekly gains for the S&P 500
Some investors have grown cautious about the increasingly narrow nature of the rally, with technology megacaps continuing to account for a disproportionate share of gains. Strong corporate earnings and continued AI enthusiasm remain key supports, but strategists warn the advance is becoming dangerously dependent on a handful of tech names. Volatility expectations are nudging higher into the open, with the VIX up over 8% in pre-market trade to above 18.
