US Equity Futures Fall Pre-Bell as US-China Summit Ends With No Significant Policy Developments

MT Newswires Live05-15 20:06

US equity futures were lower pre-bell Friday as traders noted that the summit between President Donald Trump and Chinese President Xi Jinping ended with no significant policy developments.

Dow Jones Industrial Average futures were 0.6% lower, S&P 500 futures were down 1%, and Nasdaq futures were 1.4% lower.

The two world leaders agreed that the Strait of Hormuz should remain open, according to a US readout from a White House official. Trump said that China agreed to 200 planes from Boeing (BA), with the promise to buy 750 "if they do a good job with the 200." Details of the agreement were not immediately available, including when and which type of jets would be delivered, but the initial figure was smaller than 500-plane package expected by investors.

Traders also digested the latest round of earnings, with Applied Materials (AMAT) posting higher fiscal Q2 earnings and revenue late Thursday.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 2.4% at $108.28 per barrel and US West Texas Intermediate crude 3% higher at $104.18 per barrel.

The May Empire State manufacturing index, scheduled for release at 8:30 am ET, is seen coming in at 7.2 versus 11 previously, according to estimates compiled by Bloomberg.

The April industrial production report, due at 9:15 am ET, is forecast to show a 0.3% increase following a 0.5% decline in the prior month.

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