Stocks saw modest gains Monday as U.S.-China trade talks in London brought rare-earth export controls and semiconductor access back into focus. U.S. negotiators urged China to lift curbs on rare-earth mineral exports, while signaling openness to easing restrictions on chip technology in return.
China’s Commerce Ministry, in a goodwill move, announced approvals for some rare-earth-related export licenses ahead of the meeting. Kevin Hassett, former National Economic Council director, predicted quick progress: “I expect this to be a short meeting with a big strong handshake,” he told CNBC.
China’s exports to the U.S. fell 35% year-over-year in May, their steepest drop since the pandemic’s onset, though exports to Southeast Asia and Europe rose.
Chipmakers helped drive markets, with Nvidia and AMD posting gains. The Nasdaq closed up 0.3%, the S&P 500 gained 0.1%, and the Dow ended flat. Treasury yields fell slightly, with the 10-year dipping below 4.5% ahead of major bond auctions.
Asian markets rallied ahead of the talks, while European indexes slipped.
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