Investors face a busy week of diplomatic developments, technology announcements and economic releases, with talks between US President Donald Trump and Chinese President Xi Jinping among the main events on the calendar.
Artificial intelligence will also attract attention as Meta Platforms prepares for its Connect conference and world leaders gather in New York for the United Nations General Assembly.
In economic news, preliminary US business activity figures will offer an update on growth in September, while Costco’s quarterly results will provide further insight into consumer spending and the impact of inflation.
1. Trump-Xi Talks Put Trade and AI in Focus
A planned meeting between Trump and Xi is expected to address trade relations and artificial intelligence, with investors watching for developments that could affect the economic relationship between the world’s two largest economies.
The leaders are reportedly considering an extension of the trade truce established last year following a series of retaliatory measures that raised concerns about disruption to global commerce.
The discussions come amid uncertainty over energy prices and inflation linked to the conflict involving Iran.
Ahead of the meeting, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded talks on Sunday that included discussions about a potential notification mechanism for AI safety.
Any announcements concerning trade arrangements or technology cooperation could provide further information about the direction of US-China relations.
2. Meta Connect Brings AI Development and Safety Into Focus
Meta Platforms (NASDAQ:META) chief executive Mark Zuckerberg is scheduled to deliver a keynote address at the company’s Connect conference on Wednesday.
The event comes amid debate over the pace of artificial intelligence development, the potential risks of increasingly capable systems and the responsibilities of technology companies.
Zuckerberg recently suggested that competition and legal liability provide incentives for AI developers to invest in safety while continuing to advance their models.
Nvidia chief executive Jensen Huang has also expressed confidence about the technology’s long-term risks, saying there is a “0% chance” of AI causing human extinction.
Other industry executives and researchers have warned about potentially severe consequences from advanced AI systems and called for stronger safeguards or a slower development process.
The debate has intensified alongside reports of cyberattacks involving multiple AI systems operating in coordination.
Investors will also be watching for updates on Meta’s AI products and infrastructure plans. The company is among the major technology groups committing substantial capital to chips, data centres and other computing infrastructure.
3. UN General Assembly Addresses Global Security and AI
World leaders will convene in New York for the United Nations General Assembly, with the Middle East conflict, the war in Ukraine and artificial intelligence among the issues expected to feature in discussions.
Scheduled speakers include Trump, French President Emmanuel Macron, Iranian President Masoud Pezeshkian and Ukrainian President Volodymyr Zelenskyy.
Diplomats cited by Reuters have indicated that the 15-member UN Security Council could hold high-level meetings covering AI, the Middle East and Ukraine.
The gathering takes place amid questions about the effectiveness of international institutions in responding to geopolitical conflicts.
Xi is not expected to attend the General Assembly and is instead scheduled to hold separate talks with Trump.
Investors will monitor the diplomatic discussions for developments affecting geopolitical risks, international trade and energy markets.
4. US Flash PMIs Offer Update on September Business Activity
S&P Global’s preliminary purchasing managers’ indices (PMIs) for September will provide an early indication of conditions across the US services and manufacturing sectors.
The services PMI is expected to ease to 56.0 from 56.5 in August, while the manufacturing index is forecast to decline to 53.4 from 53.9.
Readings above 50 indicate an expansion in business activity, while figures below that threshold signal contraction.
The services sector recorded its strongest growth in almost two years in August, helping offset weaker manufacturing conditions associated partly with supply disruptions linked to the Iran conflict.
The previous survey suggested that US economic growth in the third quarter could run at approximately twice the 1.5% annualised pace recorded in the April-to-June period.
September’s preliminary figures will help investors assess whether that momentum has continued and whether inflationary pressures or supply constraints are affecting business activity.
5. Costco Earnings Provide Insight Into Consumer Spending
Costco Wholesale (NASDAQ:COST) is scheduled to report fiscal fourth-quarter results during a relatively quiet week for corporate earnings.
The membership-based warehouse retailer exceeded third-quarter sales expectations in May, supported partly by demand for lower-priced petrol as energy costs increased.
Its previous results also suggested that consumers remained cautious about expensive purchases while continuing to seek lower-cost shopping options.
Costco has sought to limit food price increases, particularly for beef, although those efforts weighed on margins during the third quarter.
Investors will examine the upcoming results for updates on sales growth, consumer demand, pricing and profitability.
Costco shares have gained more than 4% since the beginning of the year, according to the figures provided.