U.S.-China Trade Talks and Market Movements

U.S. equities showed muted gains as SPY and QQQ edged higher amid ongoing U.S.-China trade negotiations. The S&P 500 and Nasdaq 100 barely clung to positive territory after late-session selloffs erased most of Monday's advances.

Trade talks focused on China's rare earth export restrictions—critical for semiconductor and EV production. The U.S. reportedly offered concessions on chip export controls in exchange for increased rare earth flows. "We expect immediate easing of restrictions post-agreement," said WHITE House economic advisor Kevin Hassett, signaling potential near-term resolution.

Market participants appear cautiously optimistic, though inflation expectations continue trending downward. The negotiations' outcome could significantly impact global supply chains for technology commodities.