Global financial markets reacted negatively after the recent meeting between U.S. President Donald Trump and Chinese President Xi Jinping failed to produce any concrete agreements. The discussions included vague talks on agricultural purchases and limited commitments from China on oil imports. Although there were hints about easing restrictions on microchip sales to China, no major trade deal was reached. Trump also confirmed that tariff issues were not discussed, and no firm decision was made on reopening the strategic Hormuz Strait.

Investor uncertainty increased following the inconclusive talks. On Friday morning, Dow Jones futures dropped more than 300 points, or about 0.6 percent, while S&P 500 futures fell 1 percent and Nasdaq futures declined 1.4 percent. Continued uncertainty around the Hormuz Strait pushed Brent crude oil prices up nearly 3 percent to above $108 per barrel.

Analysts said the lack of clear outcomes weakened investor confidence and heightened inflation concerns, prompting greater caution in global markets.