Wall Street is leaning into a cautious recovery this morning. U.S. stock futures are showing modest gains as investors shift their attention from sticky inflation data to the high-stakes diplomatic meeting between President Trump and Chinese President Xi Jinping in Beijing.

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Key Market Influences

• Tech Sector Optimism: The Nasdaq 100 is leading the slight climb, rising 0.2%. Confidence is being bolstered by the high-profile presence of Apple’s Tim Cook and Nvidia’s Jensen Huang in the U.S. delegation, sparking hopes for eased trade restrictions in the AI and semiconductor spaces.
• Geopolitical Hopes: Beyond trade, the summit is expected to touch on the Iran conflict. Markets are looking for any sign that China might help broker a diplomatic resolution to the stalemate, which has kept global energy prices—and investor nerves—on edge.
• The Inflation Backdrop: These gains come as a relief after a sharp sell-off triggered by April’s hotter-than-expected CPI. With inflation hitting its highest point since mid-2023 due to surging oil costs, the pressure is on for this summit to provide some much-needed stability.

Morning Snapshot

Index	Status	Key Level
Nasdaq 100 Futures	Up 0.2%	Fueled by chipmaker and Big Tech optimism.
S&P 500 Futures	Stable	Hovering near 7,492 after a recent pullback.
Dow Jones Futures	Flat/Low	Trading near 49,843 as inflation fears linger.

The Bottom Line

While the domestic inflation picture remains cloudy, the “state-visit rally” suggests investors are betting on a de-escalation of global tensions. All eyes remain on the joint statements regarding AI, Taiwan, and Middle East stability for the next major market move.