• US stock futures turned lower despite record highs in the Nasdaq and S&P 500 earlier this week.

• Dow futures slipped 0.2%, S&P 500 futures lost 0.3%, and Nasdaq 100 futures fell 0.5% as traders locked in gains.

• AI momentum remains the dominant market theme. Strong earnings from Applied Materials and Figma reinforced confidence in continued AI-driven spending.

• Nvidia, semiconductor stocks, and the blockbuster IPO debut of Cerebras continue to fuel enthusiasm around the AI trade.

• Trump’s Beijing visit maintained a business-friendly tone, with 16 major US executives joining the delegation.

• New commercial agreements involving Boeing and Nvidia boosted optimism around US-China economic cooperation.

• However, Taiwan and Iran remain major geopolitical risks lingering behind the positive headlines.

• Oil markets are increasingly nervous as disruptions around the Strait of Hormuz continue.

• Brent crude moved toward $107 while WTI approached $102, with oil posting another strong weekly gain.

• Global oil inventories are falling at one of the fastest paces on record, according to the IEA.

• The White House said Trump and Xi discussed keeping Hormuz open to support global energy trade.

• China’s official statement acknowledged Middle East discussions but omitted direct references to energy cooperation.

• Inflation fears are re-emerging in the US as higher energy prices begin feeding into economic data ahead of midterm elections.

What’s Next?
Right now, markets are balancing two completely opposite forces at the same time: massive AI-driven optimism and escalating geopolitical risk. If the Trump–Xi talks produce even a modest breakthrough on Iran or trade, risk assets could extend the rally. But if Hormuz disruptions worsen, energy inflation could quickly become the market’s biggest problem again.