Wall Street futures dip as China rules out any trade talks with US

Despite a possible dip on Thursday, the broader indices could still be on track to close the week with gains.

US stock futures edged lower on Thursday as Beijing dashed investor optimism over potential progress on trade relations, saying no talks with Washington are currently underway.

Futures tied to the S&P 500 slipped 0.4 percent, mirroring losses in the Nasdaq-100. Dow Jones Industrial Average futures dropped by 219 points, or 0.6 percent, following a volatile trading day where all three major indices closed higher but off their session peaks. At one point on Wednesday, the Dow had surged more than 1,100 points before paring gains.

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Markets had rallied earlier in the week on hopes that the frosty US-China trade dynamic might thaw. President Donald Trump signalled a softer stance, saying he was open to less confrontational engagement with Beijing. Treasury Secretary Scott Bessent also struck an optimistic tone, pointing to the potential for a “big deal” on trade. Currently, Chinese imports face steep tariffs from the US, with rates as high as 145 percent.

But that optimism faded overnight after China’s Ministry of Commerce categorically denied any ongoing economic or trade discussions with the US. “There are absolutely no negotiations on the economy and trade between China and the US at present,” said ministry spokesperson He Yadong, adding that speculation about talks should be dismissed. He also called for the removal of what he described as “unilateral” tariffs.

Adding to market sentiment, Trump said late Tuesday that he doesn’t plan to remove Federal Reserve Chair Jerome Powell, whose term ends in May 2026. Despite recent friction, including Trump calling Powell a “major loser” earlier this week, the comment seemed to reassure investors.

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Despite a possible dip on Thursday, the broader indices could still be on track to close the week with gains. The Nasdaq is up 2.6 percent, the S&P 500 has climbed nearly 1.8 percent, and the Dow is looking at a 1.2 percent advance.

Meanwhile, in Europe, stocks edged lower on Thursday afternoon, as the momentum from a brief relief rally began to fade. All major bourses traded in the red, with Germany’s DAX leading the decline, slipping 0.3 percent. The downturn comes after a strong session on Wednesday, when markets across the region had mirrored global gains amid fading fears of a full-blown trade war between the US and China. But the optimism proved short-lived, as China dismissed any dialogue with the US on the trade front.