Stock market today: Dow, S&P 500, Nasdaq futures muted as oil falls, markets eye looming Trump-Xi meeting

Stocks sold off on Wednesday as Treasury yields surged amid inflation worries, while investors monitored US diplomatic efforts with Iran and China.The Dow Jones Industrial Average (^DJI) dropped 0.7%, while the S&P 500 (^GSPC) declined by 0.8%. The Nasdaq Composite (^IXIC) fell 1.1% after the tech-heavy index had posted back-to-back record highs this week.The 10-year Treasury yield (^TNX) spiked above 5.11%, its highest level since 2007, as oil prices climbed and S&P's gauge of US business activity expanded more than economists expected. Oil prices, meanwhile, turned higher as a potential thaw in US-Iran relations remained uncertain. President Trump said on Tuesday that US and Iranian officials met for several hours at the UN Assembly in New York, rekindling hopes of a truce between the two nations. Brent crude oil futures (BZ=F), the global benchmark, traded at $98 per barrel, while WTI crude futures (CL=F) hit $92.That fueled increased bets that the Federal Reserve would hike interest rates at least once more this year, particularly after Federal Reserve governor Michael Barr called for "further policy adjustments" to bring inflation down.President Trump is expected to greet Chinese President Xi Jinping at Joint Base Andrews, kicking off Xi's first visit to Washington, D.C., in 11 years. The world leaders are expected to discuss trade, the war in Iran, rare earths, and artificial intelligence. Experts aren't expecting any major policy breakthroughs. Any developments in AI policy are sure to generate interest among tech investors, particularly after Anthropic (ANTH.PVT) CEO Dario Amodei penned an essay urging companies to pace AI development cooperatively. A who's who of Silicon Valley executives, including Nvidia's (NVDA) Jensen Huang, OpenAI's (OPAI.PVT) Sam Altman, and Google's (GOOG) Sundar Pichai, will attend a dinner with Presidents Trump and Xi on Thursday.