SPY•Nasdaq up ~0.3%, S&P 500 ~flat, Dow off ~0.4%
Financials are the weakest S&P 500 sector; materials lead gainers
Dollar, US crude gain; gold, bitcoin slip
US 10-year Treasury yield edges up to ~4.98%
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AI ANGST DOESN'T HAVE TO MEAN THE END OF THE AI TRADE CLICK HERE
RISING YIELDS REMAIN THE BIGGER STORY CLICK HERE
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HALF-TIME IN EUROPE: STOCKS GET A BOOST CLICK HERE
AI'S NEXT EUROPEAN WINNERS, ACCORDING TO UBS CLICK HERE
EQUITY POSITIONING WEAKENING, SHORT-COVERING RISK INCREASING — ITI CLICK HERE
SUBDUED OPEN CLICK HERE
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AI TRADE GETS ITS MUSE CLICK HERE
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An extension of the trade truce, tariff relief on low-tech, non-strategic goods, Chinese purchases of U.S. agricultural goods and aircraft, a removal of China's 15% tariff on LNG, and "firmer commitments to improve the flow of rare-earth" licenses are among potential baby steps that could arise from the meeting.
At any rate, both sides appear to be "buying time," Loo writes.
(Stephen Culp)
U.S. President Donald Trump and Chinese President Xi Jinping are in their neutral corners, gearing up to meet in the middle of the ring on Wednesday for their first face-to-face summit since May.
The stakes are always high when the leaders of the world's two largest economies balance diplomacy against acrimony, economic cooperation against self-interest.
The U.S. and China are racing to establish AI dominance—prompting investors to play both sides of that equation—and get the upper hand in their ongoing trade dispute.
But a note from Oxford Economics on Tuesday suggests that neither side expects much movement from the summit; its primary goal is to buy time while indicating a "calmer, but not closer, relationship."
China is aiming to preserve its export power and reduce its technological dependency on foreign sources, and the U.S. wants to curb supply chain disruption and on/reshoring manufacturing capacity.
But "economic interdependence is difficult to unwind," writes Louise Loo, head of Asia economics at Oxford Economics.
As such, any progress from the summit is likely to be "narrow and reversible," Loo adds.
