U.S. and China Edge Toward New Trade Deal, Lifting Hopes for Tech and Materials Stocks
Trade tensions between the U.S. and China show signs of easing as officials from both nations reached a preliminary agreement during talks in Kuala Lumpur. The deal, described as 'constructive,' addresses key issues including rare earth exports, tech restrictions, and fentanyl controls. Market sentiment improved ahead of the upcoming Asia-Pacific Economic Cooperation summit.
Rare earth materials, critical for electric vehicles and tech manufacturing, remain a focal point. While the agreement is still in early stages, it could delay planned tariff escalations and stabilize supply chains. Investors are watching for potential Ripple effects across commodity-linked assets and tech sectors.