U.S. equity futures retreated early Friday, following a notable session where the Dow Jones Industrial Average closed above the 50,000 mark and the S&P 500 surpassed 7,500 for the first time. The selloff comes as market participants assess the implications of the recent summit between U.S. President Donald Trump and Chinese President Xi Jinping.
At 4:31 p.m. (Bangkok Time), Nasdaq 100 futures led declines, slipping 1.61%, while S&P 500 contracts were down 1.09% after both indexes achieved historic closing highs on Thursday. Dow Jones Industrial Average futures lost 0.66%.
The previous session saw significant gains, with the S&P 500 up 0.77% and the Nasdaq Composite advancing 0.88%. The Dow closed 370.26 points higher, reflecting an increase of 0.75%. Investors have continued to favor the largest technology companies, which has propelled the indices to new records, though the strength appears concentrated in a narrow segment of the market—a trend causing apprehension regarding the durability of the rally.
Attention also turned to diplomatic developments as President Trump concluded high-level discussions with President Xi in Beijing before departing for Washington. The meetings included 16 senior executives from the U.S., resulting in commercial agreements benefiting firms such as Boeing and Nvidia. Despite the positive business tone, unresolved issues around Taiwan and Iran persisted.
Hopes remain that China could leverage its ties with Iran to help mitigate the conflict affecting energy markets. However, a breakthrough was not achieved. Rising concerns about ongoing hostilities have contributed to higher U.S. inflation readings and persistent upward momentum in benchmark 10-year Treasury yields, which remained above 4.5% amid broad weakness in global bond markets.
In corporate news, Figma shares climbed following a Thursday earnings announcement highlighting robust demand linked to artificial intelligence trends. Investors are also awaiting earnings updates from Mizuho Financial Group, RBC Bearings, and Sigma Lithium Corporation, scheduled for release later on Friday.
