US Stock Market Update: Dow, S&P 500, Nasdaq Futures Dip After Trump–Xi Truce Ahead of Big Tech Earnings
The US stock market entered Thursday with a cautious mood as futures for the Dow Jones, S&P 500, and Nasdaq slipped slightly. Despite the much-anticipated meeting between former US President Donald Trump and Chinese President Xi Jinping, investors remain unsure whether their temporary trade truce can ease long-term tensions.
With Big Tech earnings just hours away, the market is holding its breath, waiting for clearer signals before making bold moves.
Cautious Trading After Trump–Xi Meeting
After weeks of speculation, the Trump–Xi conference concluded with friendly gestures and broad statements of cooperation. However, markets wanted details and those were missing. While both leaders agreed to keep communication open, there were no firm agreements on tariffs, AI export controls, or semiconductor trade.
As a result, Dow Jones futures edged down by 0.4%, the S&P 500 by 0.3%, and Nasdaq futures by 0.35%, signaling investor hesitation. Analysts say that although tensions have cooled, the lack of concrete progress means volatility may return once new data or corporate updates emerge.
Markets have become increasingly sensitive to trade headlines, especially those involving technology. Since AI and chip manufacturing are now central to both nations’ strategies, even minor political friction can shake confidence in the stock market.
Big Tech Earnings Take Center Stage
The coming week will test the strength of the stock market rally as major tech firms, Apple, Microsoft, Alphabet, Amazon, and Meta, are all scheduled to release quarterly results.
These companies represent over 25% of the S&P 500’s market capitalization, which means their earnings can dramatically shift investor sentiment. Wall Street expects mixed results: robust revenue growth from cloud computing and artificial intelligence, but possible pressure on profit margins due to higher chip and labor costs.
The rise of AI stocks has been a major force in 2025’s market rally. Firms like Nvidia, AMD, and Palantir have surged as investors bet on the long-term adoption of generative AI tools and data-driven automation. However, experts caution that valuations are now stretched, and any disappointment from Big Tech earnings could trigger a short-term correction.
This is where stock research becomes critical. Analysts advise investors to look beyond headlines and examine key metrics, cloud segment performance, AI investment returns, and forward guidance to understand which companies can sustain growth through 2026 and beyond.
Market Sentiment Remains Mixed
Despite solid economic data, market sentiment remains fragile. The stock market has been riding a wave of optimism for months, but traders are now pausing to reassess the fundamentals.
Inflation remains slightly above the Federal Reserve’s target, and upcoming data could influence expectations for future rate cuts. If inflation cools faster than expected, equities may rebound strongly. But if price pressures persist, the Fed could hold interest rates higher for longer, which often dampens risk appetite.
Portfolio managers are adopting a “wait-and-see” stance. Some are locking in profits from the recent rally, while others are adding defensive positions in energy and utilities. A few hedge funds have even increased their exposure to short-term bonds to hedge against volatility.
The Nasdaq Composite, heavily weighted toward technology, has been particularly sensitive to swings in sentiment. With Big Tech earnings on deck, traders are watching for any signs of weakness that might prompt a broader sell-off.
Trump–Xi Truce: Symbolic or Substantial?
The Trump–Xi meeting drew global attention, not only because of its geopolitical weight but also due to its implications for the economy. For months, markets had priced in potential tariffs, export restrictions, and supply chain disruptions.
The meeting, while civil, did little to resolve these issues. Economists at The Wall Street Journal noted that the discussions were more about rebuilding dialogue than creating policy. Still, even symbolic progress helps calm markets, at least temporarily.
What worries investors most is the uncertainty surrounding technology exports. The United States continues to restrict China’s access to advanced AI chips and cloud infrastructure. China, meanwhile, is developing domestic alternatives and increasing pressure on foreign tech firms operating in its markets.
This rivalry continues to define global stock trends. Any escalation could dampen investor enthusiasm for multinational firms with large China exposure, especially in semiconductors, software, and consumer electronics.
The Bigger Picture: What Comes Next for Investors
For long-term investors, this environment represents both risk and opportunity.
The short-term pullback in the stock market doesn’t necessarily signal a downturn; rather, it reflects natural consolidation after months of strong gains. Traders are waiting for confirmation from corporate earnings, policy announcements, or macro data before committing new capital.
Experts recommend staying diversified. Those focusing on AI stocks should distinguish between hype-driven startups and established firms with proven revenue models. Investors might also consider stock research platforms and data analytics tools to make more informed decisions rather than reacting to market noise.
If the upcoming earnings season surprises to the upside, the Dow Jones and S&P 500 could regain momentum. But weak corporate forecasts might push indices lower in the short term, offering potential buying opportunities for patient investors.
What to Watch This Week
- Earnings from Microsoft and Alphabet: These results often set the tone for the rest of Big Tech.
- Economic indicators: Pay attention to jobless claims, inflation data, and consumer confidence reports.
- Fed commentary: Any shift in tone from the Federal Reserve regarding interest rates could move markets.
- AI sector news: Developments in AI regulation or international chip supply chains could influence technology stocks significantly.
As volatility remains elevated, analysts expect market rotations, with money moving between growth and value sectors, to continue through early November.
Conclusion
The US stock market is entering a pivotal week marked by trade diplomacy and critical earnings results. The Trump–Xi truce has eased tensions but left investors craving clarity. As Big Tech steps into the spotlight, traders will watch every line of earnings guidance for signs of either renewed optimism or impending correction.
For now, caution dominates. But as history shows, volatility often creates opportunity, especially for those equipped with strong stock research and long-term conviction.
FAQs
Investors were hoping for concrete trade agreements. The meeting offered a positive tone but lacked actionable details, prompting a cautious pullback.
Tech giants like Microsoft, Alphabet, Apple, Amazon, and Meta will play the biggest role due to their large weighting in major indexes.
Yes, but carefully. The AI sector remains promising, but valuations are high. Focus on firms with solid revenue growth and clear profitability.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
