The stock market is witnessing a positive start this week following favorable updates from US and Chinese trade officials. Key discussions earlier revealed that the two nations have made significant progress in resolving trade disputes. This paves the way for an important meeting between President Trump and President Xi Jinping.
Trade Talks Between US and China
The discussions leading to this optimistic market outlook were led by US Treasury Secretary Scott Bessent and China’s chief trade negotiator Li Chenggang. Bessent emphasized that both sides have established “a very successful framework” for dialogue during their meeting scheduled for Thursday at the Asian-Pacific Economic Cooperation Summit in South Korea.
Stock Futures Surge
- S&P 500 equity futures surged by 0.83% as of 5:52 a.m. ET.
- Dow Jones and Nasdaq are similarly trending upward.
This positive trend comes after the S&P 500 achieved record highs in both intraday and closing metrics on Friday. Bessent also reassured markets by indicating that President Trump’s earlier threat of imposing 100% tariffs on Chinese imports has now been largely dismissed.
Impact on Rare Earth Stocks
While the news brings optimism to broader markets, it has negatively affected North American rare earth producers. As of 6 a.m. ET, major stocks displayed considerable declines:
| Company Name | Stock Change |
|---|---|
| Critical Metals | -8% |
| USA Rare Earth | -7% |
| Lithium Americas | -3% |
| United States Antimony Corp. | -15% |
| MP Materials | -5% |
The anticipation of a trade truce has reduced the immediate urgency for boosting local supply, leading to diminished shares in these firms. Additionally, prospective delays in restrictions on rare earth exports from China and expected purchases of US soybeans provide further context to this shifting landscape.
Conclusion
In summary, while equity futures are enjoying a rally, rare earth stocks are facing tough times. Negotiators also addressed the TikTok agreement and shipping fees during recent discussions. As President Trump expressed confidence in securing a deal with China, attention will remain on the outcomes of this pivotal meeting.
