U.S. stock futures edged higher on Thursday. Investors weigh AI-fueled tech optimism against the Trump-Xi summit.
Oil prices hover above $100 a barrel. Markets await any announcements on Iran war diplomacy.
Cisco Systems shares soared on a restructuring plan. Kevin Warsh confirmed as new Fed Chair.
1. Futures rise
U.S. stock futures ticked higher on Thursday. Enthusiasm around artificial intelligence powered a narrow advance in tech shares.
By 03:40 ET, Dow futures rose 176 points (0.4%), S&P 500 futures gained 18 points (0.2%), and Nasdaq 100 futures jumped 144 points (0.5%).
The U.S. cleared about 10 Chinese companies to buy Nvidia's H200 chip, the second-most powerful AI chip. Nvidia CEO Jensen Huang is accompanying Trump to China.
On Wednesday, the S&P 500 hit a fresh all-time peak. The Nasdaq Composite spiked 1.2%. The Dow dipped 0.1%.
Vital Knowledge analysts noted that chip stocks climbed, but software and services lagged.
Sentiment shrugged off hotter-than-expected U.S. producer price index data.
2. Trump-Xi meeting
Trump and Xi ended their first round of talks. Xi said trade negotiations are making progress. However, pushback over Taiwan could sour relations.
Markets are keen for updates on Iran war discussions. Some analysts suggest Trump may ask China to act as a guarantor for a peace agreement.
The closure of the Strait of Hormuz clouds the global economic outlook.
3. Oil edges up
Oil prices crept higher. Brent crude futures floated above $105 a barrel, compared to a pre-war level of roughly $70.
This spike fuels inflation worries. U.S. consumer and producer price readings accelerated this week.
Morgan Stanley analysts flagged that the energy shock may spark softer growth and inflationary pressures.
4. Cisco to slash workforce
Cisco Systems shares soared in extended trading. The networking gear provider unveiled a sweeping restructuring plan centered around AI.
The company expects a $1 billion charge for severance and other costs. It will cut about 4,000 jobs, or 5% of its workforce.
CEO Chuck Robbins said the overhaul is about reallocation of resources, not just savings.
Fiscal 2026 revenue is now anticipated in the range of $62.8 billion to $63 billion.
5. Warsh confirmed as new Fed Chair
The U.S. Senate confirmed Kevin Warsh as chair of the Federal Reserve on Wednesday. He takes over as the central bank grapples with rising inflation.
Warsh will assume leadership from Jerome Powell, whose term ends Friday. Powell remains a Fed governor.
