U.S. Stocks Rise on Hopes of U.S.-China Tech Trade Breakthrough Amid Rare Earth Deal
- Rahaman Hadisur
- Jun 11
- 3 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Business
U.S. stocks closed mostly higher on Monday, buoyed by expectations that China may ease restrictions on rare earth exports in exchange for the U.S. softening its controls on semiconductor access. Investors welcomed signs of progress in ongoing U.S.-China trade negotiations, which took place overnight in London.
Kevin Hassett, Director of the National Economic Council, told CNBC that the meeting between U.S. and Chinese officials was expected to be brief but impactful.
“I expect this to be a short meeting with a big strong handshake,” Hassett said, suggesting that a mutual easing of trade restrictions may follow immediately. “Our expectation is that ... immediately after the handshake, any export controls from the U.S. will be eased, and the rare earths will be released in volume.”
As optimism grew, shares of major chipmakers surged. Nvidia and AMD saw gains, while MP Materials the largest rare earth miner in the U.S. rallied 7.81%.
The meeting followed a phone call last week between President Donald Trump and Chinese President Xi Jinping after Trump accused China of violating a recent tariff pause agreed in Switzerland.
Market Snapshot
The Dow Jones Industrial Average closed nearly flat, shedding just 1.11 points to end at 42,761.76. The S&P 500 rose 0.09% to close at 6,005.88 crossing the 6,000 mark for the first time since February 21 and the Nasdaq gained 0.31%, closing at 19,591.24. The 10-year Treasury yield fell to 4.478%.
Key Economic Data Ahead
Investors are also closely watching a string of economic indicators due this week. The May Consumer Price Index (CPI) the first full month of data since Trump’s aggressive April 2 tariff plan is set for release midweek. While some tariffs have been rolled back or paused, inflation concerns persist.
Wholesale price data, which tracks costs paid by businesses, is due the following day. A University of Michigan consumer sentiment report, set for release at the end of the week, will offer further insights into inflation expectations. A recent New York Federal Reserve survey already indicated consumers expect lower inflation in the near term.
Legislative Spotlight: The Tax Bill Debate
All eyes are also on the Senate’s handling of a sweeping new tax bill, which exceeds 1,000 pages. Dubbed the "One Big Beautiful Bill" by President Trump, the legislation has sparked intense public debate. Tesla CEO Elon Musk slammed the bill as a “pork-filled Congressional spending abomination,” prompting Trump to respond by calling Musk “crazy.”
Corporate Developments
Warner Bros. Discovery is splitting into two independent publicly traded companies, separating its streaming and production units from its cable networks. Shares fell around 3% after initial gains.
Meta Platforms is reportedly in talks for a multibillion-dollar investment in AI startup Scale AI. Meta shares slipped slightly.
EchoStar is considering filing for bankruptcy amid a regulatory review of its spectrum licenses, according to the Wall Street Journal. Shares plummeted 8.5%.
Universal Health Services dropped over 6% following CFO Steve Filton’s cautious remarks about procedure volume recovery and potential tax bill impacts on Medicaid revenues.
United Natural Foods shares fell 6.89% after the company reported a cyberattack that disrupted its operations.
Cryptocurrency
Crypto markets were upbeat, with Bitcoin climbing 2.79% to $108,720.70. Meanwhile, Gemini announced that it has confidentially submitted a draft registration for an IPO to the U.S. Securities and Exchange Commission.
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