US stocks rally after four-day losing streak as Biden-Xi call shows signs of easing tensions

Stock futures have jumped as a first-in-seven-month phone conversation between President Joe Biden and China’s Xi Jinping provided modest comfort to investors, while a surge in crude prices looked set to boost energy shares.

S&P 500 and Dow Jones Industrial Average futures were both about 0.5% higher after retreating for four days in row. Nasdaq Composite futures advanced 0.4% after two days in decline.

Meanwhile, a jump in crude prices on signs of tight US supply looked set to boost energy shares. Brent futures for November delivery gained over 2% to $72.93 per barrel, while WTI surged 2.38% to $69.76 per barrel.

The energy sector was the top gainer, with Exxon Mobil, Occidental Petroleum, Chevron, and Halliburton rising between 1.1% and 2.0%.

The latest phone call between US President Joe Biden and Chinese leader Xi Jinping boosted sentiment, raising hopes for a thaw in ties between the world’s two biggest economies.

Meanwhile, the data released on Friday showed that the producer price index soared 0.7% last month, and jumped by 8.3% through August – the biggest year-on-year growth in 11 years, after pushing up by 7.8% in July.

High inflation will likely persist for a while, with supply chains remaining tight, as the Covid-19 pandemic drags on.

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