US stock futures rise 0.2% ahead of US-China trade talks

US stock index futures advanced slightly in early trading, led by a 0.2% gain in S&P 500 futures following modest gains in the cash index on Friday, September 18. Market liquidity remained low as financial markets in Japan closed for a three-day holiday.

Investors watched bilateral talks in New York led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. The discussions cover trade, investment, artificial intelligence, and the war in Iran. Both sides are reviewing a commercial truce that lowered tariffs and export restrictions, which is scheduled to expire in November ahead of a planned summit between US and Chinese leaders.

In currency and fixed income markets, the 10-year US Treasury yield closed just below 5% on Friday amid expectations of further interest rate hikes by the Federal Reserve. The Japanese yen traded near 157 per dollar after falling more than 2% last week, while the offshore yuan stood at 6.6964 per dollar and the euro traded at $1.1481.

Commodity markets also moved higher amid Middle East geopolitical tensions. Brent crude rose 0.4% after Saudi Arabia reported intercepting a ballistic missile aimed at its capital and blocking attacks near the Red Sea oil port of Yanbu, while WTI crude advanced 0.8% to $101.08 per barrel.