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

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US equity futures were falling 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 0.9% lower, S&P 500 futures were down 1.2%, and Nasdaq futures were 1.7% 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 2.5% at $108.34 per barrel and US West Texas Intermediate crude 3.2% higher at $104.43 per barrel.

The New York Federal Reserve's Empire State manufacturing index rose to 19.6 in May from 11.0 in April, compared with expectations of a decrease to a reading of 7.2 in a survey 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.

In other world markets, Japan's Nikkei closed 2% lower, Hong Kong's Hang Seng ended 1.6% lower, and China's Shanghai Composite finished 1% lower. Meanwhile, the UK's FTSE 100 was down 2%, and Germany's DAX index was 2% lower in Europe's early afternoon session.

In equities, Nvidia (NVDA), Micron Technology (MU), and Taiwan Semiconductor Manufacturing (TSM) were part of broader technology stock sell-offs as traders took profits after the group saw sharp gains of late. Nvidia shares were 3% lower, Micron stock was down 4.2%, and Taiwan Semiconductor shares fell 3%.

On the winning side, Toyota Motor (TM) shares were up 1.7% after the company sought approval to build a new vehicle assembly line at its manufacturing plant in Texas as part of a $2 billion expansion, according to a Reuters report citing a filing. Figma (FIG) stock was up 7.2% after the company posted higher Q1 adjusted earnings and revenue that beat analysts' estimates. Magnum Ice Cream (MICC) shares rose over 11% after Reuters reported that Blackstone (BX) and Clayton, Dubilier & Rice are in the early stages of considering bids to acquire the company.

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$^DFMGI$^FADGI$ADX:AWNIC$ADX:TAQA$DFM:ALANSARI$DFM:NGI
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$^DJI$^IXIC$^SPX$AVGO$CBRS$CSCO$NVDA
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