Global stock markets rose and oil prices edged lower after a high-level meeting between US President Donald Trump and Chinese President Xi Jinping, as investors reacted cautiously to hopes of easing trade tensions between the world’s two largest economies.
Markets responded positively on the first day of the summit, with optimism that renewed dialogue between Washington and Beijing could help reduce economic uncertainty and stabilise global trade flows.
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In energy markets, benchmark Brent crude fell by 0.40 percent to $105.21 per barrel, while US West Texas Intermediate (WTI) crude slipped 0.07 percent to $100.95 per barrel. Analysts said the decline reflected expectations that improved US-China relations could ease supply concerns and reduce geopolitical risk premiums.
🔴Trump has arrived at the Great Hall of the People for high stakes talks with Xi Jinping. Global markets are on edge as they tackle the Iran oil crisis, a potential tariff truce, and the 11B Taiwan arms standoff. I expect a great big hug, Trump noted. pic.twitter.com/sHCS1uzTWx
— War Alerts (@WarNewsGlobal) May 14, 2026
Despite the drop in oil prices, traders noted that risks in the Gulf region remain elevated, keeping energy markets sensitive to any developments in Middle East security and shipping routes.
The modest decline in crude prices encouraged risk-taking in equity markets, particularly in technology and export-oriented sectors. Investors shifted toward growth stocks amid expectations of more stable global trade conditions.
The S&P 500 index rose by around 0.6 percent to reach a new record high, while the Nasdaq Composite gained more than 1 percent. Semiconductor and artificial intelligence-related companies led the rally, reflecting strong investor interest in the tech sector.
Market sentiment was further boosted by reports suggesting that the United States may consider easing export restrictions on artificial intelligence chips to China as part of broader negotiations.
Financial analysts said the meeting between Trump and Xi has raised hopes of a temporary thaw in trade tensions, although they cautioned that structural disagreements between the two economies remain unresolved.
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Investors are now closely watching further developments from the summit, with expectations that any concrete agreements on trade, technology and energy cooperation could continue to influence global markets in the coming weeks.
For now, markets are balancing optimism over diplomatic engagement with caution over persistent geopolitical and economic risks.