US stock futures drifted higher on Monday as oil prices fell and investors continued to assess the Fed's rate hike and geopolitical uncertainty.

Futures on the Dow Jones Industrial Average (YM=F) rose 0.7% after the blue-chip index posted its third straight weekly loss. Those on the S&P 500 (ES=F) gained 0.7%, while contracts for the Nasdaq-100 (NQ=F) climbed 1%.

Stocks have largely powered through a wall of worry this month, though rising bond yields, geopolitical risk in the Middle East, and AI jitters have given investors reason to pause. After the Federal Reserve hiked interest rates last week, traders have rushed to price in further Fed rate hikes as well.

Helping sentiment, Oil prices retreated below $100 per barrel as hopes emerged that the US and Iran would resume diplomatic talks.

With a sparser economic and earnings calendar this week, one thing markets will be closely watching is the summit between President Trump and Chinese President Xi Jinping on Thursday.

The high-stakes talks are expected to focus on extending the tariff truce and cooperation on artificial intelligence. Several AI leaders, including Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, former Apple CEO Tim Cook, Qualcomm Inc. CEO Cristiano Amon, and Microsoft CEO Satya Nadella, will also attend a dinner with the Chinese president.

The summit comes at a critical point for those companies, after an essay by Anthropic (ANTH.PVT) CEO Dario Amodei broke open a long-simmering debate over whether or not frontier AI labs should pace model development.

Tech stocks tentatively rose in the US and Asia on Monday morning after Treasury Secretary Scott Bessent hailed "very successful" preliminary talks with his Chinese counterpart over the weekend and proposed a US-China AI dialogue.

Smart ring maker Oura and its shareholders expect to offer 50,000,000 shares priced at $40.00-$44.00 per share in its upcoming IPO, according to a filing with the Securities and Exchange Commission on Monday.

At that price, the Finnish company would be valued at up to $14.1 billion. The company plans to go public under the ticker "OURA."

The company makes rings that track 50+ health metrics for users. Last year, the company sold 3.6 million smart rings, which retail for between $399 and $499, according to Bloomberg.

Goldman Sachs & Co. LLC, Morgan Stanley, JPMorgan, Allen & Company LLC, and Jefferies are leading the offering, according to the filing.

Read more.

Ahead of the meeting between President Trump and Chinese leader Xi Jinping this week, US Treasury Secretary Scott Bessent met with his Chinese counterpart, Vice Premier He Lifeng, for hours to discuss a range of topics, from trade to AI.

The US side said it proposed a new AI safety notification mechanism for the upcoming negotiations, while the Chinese state news agency Xinhua acknowledged only that the two sides discussed AI.

Reuters reports:

Bessent told reporters that the two ‌sides discussed setting up a new US-China AI dialogue, with a particular emphasis on national security concerns with a notification system for common goals and common threats that would cover AI-related ‌incidents that rise to a national security level.

"We think that, just like with any cross-border activity, that moving from opaque to more transparency between the number one and the number two AI powers in the world is very important," Bessent said at the conclusion ​of the talks.

Trump and Xi first discussed potential consultations on AI development in May in Beijing, but that forum was never formalized.

Read more.

Economic data: Chicago Fed national activity index, August (-0.06 expected, -0.08 previously)

Earnings calendar: No notable earnings.

Catch up on some top stories from over the weekend:

Polls show Trump is out of step with Americans on AI. It might not matter in this fall's elections.

'This could be something more substantial': Wall Street braces for more Fed rate hikes

Caregiving for kids and parents: The financial squeeze kneecapping millennials

GM brings back Apple CarPlay as buyers demand it

US housing costs rise further out of reach ahead of midterms

CNN reports:

Paramount is in advanced talks with state attorneys general to resolve the antitrust lawsuit blocking its acquisition of Warner Bros. Discovery, CNN's parent company.

But the talks are creating divisions among some of the Democratic states that brought the lawsuit two months ago, sources tell CNN.

California Attorney General Rob Bonta, who has been leading the 12-state coalition, has been pressing to strike a settlement deal with Paramount in recent days.

However, some of the states are not yet on board. New York Attorney General Letitia James has been resisting the deal terms and seeking additional protections for workers, according to a person familiar with the matter.

Connecticut and at least two other states also have reservations about the settlement and are not currently on board. The holdouts are seeking additional remedies from Paramount.

Read more.