US-China trade talks boost markets and lift investor confidence on Monday. U.S. stocks edged higher as traders welcomed the positive start to renewed trade discussions between the two economic giants. This optimism came after the first day of high-level talks concluded on a hopeful note.
The S&P 500 rose by 0.1%, inching closer to its all-time closing high. Meanwhile, the Dow Jones Industrial Average stayed flat. The tech-focused Nasdaq Composite gained around 0.3%, supported by tech sector strength.
The trade negotiations began in London on Monday and will continue on Tuesday. These talks follow a recent phone conversation between former President Trump and Chinese President Xi Jinping. Traders are watching closely, hoping for progress in easing the ongoing tensions.
At a White House briefing, Trump said, “We are doing well with China,” while adding, “China’s not easy.” He shared that he was “only getting good reports” from the discussions. Such remarks helped reassure markets after months of trade uncertainty.
The stakes remain high. Both countries face warnings that tariff barriers could harm their economies and ripple through global markets. Investors look back to the Geneva pact in mid-May as a benchmark for potential success. However, relations have worsened since then, with accusations flying between Washington and Beijing about breaking the trade truce.
For now, the market volatility that followed Trump’s early-April tariff hikes seems to have eased. Stocks ended last week on a strong note after encouraging U.S. jobs data helped calm fears of an impending recession.
Looking ahead, the market’s attention turns to upcoming inflation reports. The U.S. wholesale inflation data will be released on Thursday, followed by the consumer inflation report on Friday. These reports could influence the Federal Reserve’s policy decisions.
On the corporate side, Apple revealed a major update to its iOS operating system during its annual Worldwide Developers Conference. The new “Liquid Glass” interface aims to improve responsiveness across Apple’s device lineup.
Overall, US-China trade talks boost markets by creating a more optimistic outlook. Investors remain hopeful that ongoing discussions will prevent further escalations and support economic growth.
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