US Stock Futures Fall as Trump-Xi Talks Leave Chip Controls Unaddressed

U.S. stock index futures moved lower on Thursday evening after a senior U.S. official said recent discussions between Washington and Beijing did not focus on semiconductor export restrictions.

The comments weakened expectations for increased U.S. chip sales to China and pressured market sentiment following record highs on Wall Street.

By 21:48 ET (01:48 GMT), S&P 500 Futures fell 0.35% to 7,498.50 points. Nasdaq 100 Futures dropped nearly 0.5%, while Dow Jones Futures declined 0.4%.

Wall Street Pulls Back After Record Highs

Futures turned lower after major U.S. indexes reached fresh records during Thursday’s trading session.

Strong gains in technology stocks, particularly Nvidia, had previously supported market momentum amid optimism over potential growth in semiconductor sales to China.

Positive remarks from President Donald Trump regarding discussions with Chinese President Xi Jinping also helped lift investor confidence earlier in the day.

US Official Says Chip Export Controls Were Not Key Topic

Market sentiment shifted after U.S. Trade Representative Jamieson Greer stated that semiconductor export controls were “not a major topic of discussion” during recent talks between the U.S. and China.

The comments reduced optimism that negotiations could lead to easier access for American chipmakers to the Chinese market.

The statement came shortly after reports indicated the U.S. had approved sales of Nvidia’s H200 artificial intelligence chip — its second-most powerful AI processor — to selected companies in China.

However, reports also suggested no deliveries had taken place so far, leaving uncertainty over future sales.

Nvidia Retreats After Reaching Record Highs

Nvidia shares had surged to all-time highs earlier following optimism surrounding potential China-related sales.

The stock later slipped 0.7% in after-hours trading after Greer’s remarks, reflecting renewed uncertainty over export opportunities.

Nvidia CEO Jensen Huang reportedly traveled to China alongside President Trump and was seen seeking progress on semiconductor access to the Chinese market.

Semiconductor Stocks Remain Supported by AI Growth Expectations

Despite short-term volatility, the broader semiconductor sector continued showing strength.

Chipmaker TSMC rose 4.5% after projecting that the global semiconductor industry could exceed $1.5 trillion in value by 2030, driven largely by accelerating demand for artificial intelligence technologies.

The forecast reinforced investor expectations for continued long-term growth in AI-related industries.

Trump and Xi Expected to Continue Talks

President Donald Trump and President Xi Jinping are expected to hold additional discussions on Friday following early signs of constructive dialogue.

Both leaders expressed optimism regarding future U.S.-China relations, although specific outcomes from initial talks remain unclear.

Trump stated:

“Hopefully our relationship with China will be stronger and better than ever before.”

Key topics are expected to include trade tariffs, artificial intelligence cooperation and geopolitical issues.

Taiwan and Middle East Tensions Add Complexity to Talks

Taiwan remains a major area of disagreement between the two nations.

President Xi described Taiwan as the most important issue to address during discussions with Trump. Meanwhile, Trump previously suggested he would raise concerns regarding U.S. arms sales during negotiations.

The talks are also taking place amid ongoing tensions involving Iran and the broader Middle East conflict, which has disrupted energy supplies and increased pressure on several Asian economies, including China.