U.S.-China Trade Talks Show Progress, Semiconductors and Rare Earths in Focus

The first day of U.S.-China trade negotiations concluded with both sides characterizing the discussions as 'fruitful.' Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick described the talks positively, though details remained sparse. President TRUMP echoed the sentiment, emphasizing his desire for China to further open its markets.

Semiconductors and rare earths emerged as pivotal topics. The U.S. is weighing eased export restrictions on semiconductors, aircraft parts, and ethane in exchange for increased Chinese rare earths exports. Last year's $295.51 billion U.S. trade deficit with China underscores the stakes, with the year-to-date gap at $88.02 billion as of April.

Market reactions were muted in the crypto space, with no direct mentions of digital assets in the talks. The iShares China Large-Cap ETF (FXI) outperformed the S&P 500 (SPX) on the news, suggesting investor Optimism about reduced trade tensions.