US futures are higher as we await color on the Trump-Xi summit and US- Iran negotiations, which are said to be ongoing, and as the tech meltup continues. What is known so far is that Trump / Xi agree that Iran cannot have a nuclear weapon, Hormuz should reopen without a toll or militarization; the countries will look to increase investment in each other as NVDA H20 chips are approved for a set of Chinese companies. In short, markets are higher on what BBG calls the 4 Ts:Tehran, Trade, Taiwan and Tariffs,to which we can also addTech.As of 8:00am ET, S&P futures are up 0.3% while Nasdaq futures rise 0.2%. In pre-market trading, Cisco soared 16% after the company reported results that beat expectations and raised its full-year forecast as it laid off thousands to fund capex. Mag7 stocks are higher led by NVDA again; semis are mostly lower despite KOSPI adding 1.7%, while Cyclicals are seeing a bid. Cyclicals, esp Consumer Disc and Fins, would be among the biggest beneficiaries of a reopening of SoH (oil down, yield curve bull steepens, lower inflation expectations). Bond yields are flat to down 1bp, the USD is flat, and commodities are mostly lower. Energy commodities are still rallying but Metals are weaker dragged by the PGMs as Ags come for sale. Today’s macro data focus is on Retail Sales and Jobless Data.

In premarket trading, Magnificent Seven are mostly higher: Nvidia (NVDA) is up 1.5% as the semiconductor giant’s CEO Jensen Huang joined President Donald Trump on his visit to China. Huang told reporters in Beijing that “the meetings went excellent.” (Tesla +1%, Apple +0.4%, Microsoft +0.2%, Meta Platforms +0.1%, Amazon -0.1%, Alphabet -0.2%)

With the Trump-Xi talks underway, markets may expect a focus on the “four T’s” —Tehran, Trade, Taiwan and Tariffs— with scope for constructive headlines across all four topics. Of course,Techremains the biggest upside driver of all: Cisco Systems soars in premarket after raising its full-year forecast. Cisco delivered a better-than-anticipated sales outlook and announced plans to cut thousands of jobs to focus on the fast-growing AI market. Analysts highlight the company’s accelerating growth rate. Elsewhere in AI, Alphabet’s bond fundraising continues at pace:the latest sale over four months is for quadruple the amount of bonds Alphabet had sold in its first 26 years in business.

“Ingredients for the big top in markets are still missing, namely multiple Fed hikes, wider credit spreads or an overheating growth pulse,” said Manish Kabra, chief US equity strategist at Societe Generale. “The bull case for the S&P 500 stays intact.”

Trump’s summit with Xi Jinping shifted the spotlight from the war in Iran that has left a key conduit for Middle East oil flows all but closed for more than two months. The Chinese leader signaled that Beijing is moving toward greater openness as traders look out for business deals and purchasing commitments from the world’s second-biggest economy.

“I would expect the summit to matter more for sentiment than for a grand policy reset,”said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. “The market is likely looking for a de-escalation tone, fewer tariff threats, and no new restrictions on trade, technology, or geopolitics.”

Meanwhile, excessive risk-taking, particularly from the retail crowd, is showing no sign of abating as leveraged ETF assets under management hit a record $180 billion, with growing impact on underlying assets.

In Europe, the Stoxx 600 rose 0.4% as local markets rose for a second day, led by technology shares that were boosted by better-than-expected results from Cisco Systems in the US. Trading volumes were lighter than usual, with markets in Denmark, Finland, Norway, Sweden and Switzerland closed for a holiday. to 614.14 with 164 members down, 407 up, and 29 little changed. Here are some of the biggest movers on Thursday:

Earlier in the session, Asian stocks edged higher as investors poured into the region’s top chipmakers while keeping watch on talks between US President Donald Trump and Chinese counterpart Xi Jinping. The MSCI Asia Pacific Index rose 0.2%, boosted by Samsung, Alibaba and TSMC. Shares advanced in South Korea and Taiwan, while benchmarks in mainland China fell amid the ongoing US-China summit. In their meeting Thursday, Trump said China and the US will have a “fantastic future,” while Xi stressed stability in trade between the world’s top economies. The leaders had discussed expanding market access for US businesses and China’s potential interest in purchasing more US energy and agriculture, among other things.

In rates, treasuries slightly richer across the curve, supported by steady oil prices and marginally bigger gains for bunds and gilts. S&P 500 futures also hold small gains, led by technology stocks. US session includes April retail sales data and several Fed speakers. US 2- to 10-year yields are 1bp-2bp lower on the day, slightly outperforming long-end tenors;10-year near 4.455% trails German and UK counterparts by about 2bp.IG dollar issuance slate empty so far, with weekly volume $48 billion vs $50 billion predicted. Six names priced $14 billion Wednesday, with issuers paying about 2.7 basis points in new issue concessions on deals that were 3.4 times covered

Source: ZeroHedge News