The Nasdaq Composite neared the significant 20,000-point threshold as cautious optimism emerged from fresh US-China trade discussions. Commerce Secretary Howard Lutnick described the talks in London, focusing on key issues like export controls, rare earth materials, and semiconductor access, as progressing ‘really, really well.’
Market reactions reflected this tentative optimism coupled with underlying uncertainty. While the surge in the Nasdaq signaled relief within the tech sector, Chinese equities exhibited notable volatility, capturing the investor apprehension persisting around the complex negotiations.
President Trump’s public cautionary remarks and ongoing geopolitical tensions served as stark reminders of the significant hurdles remaining, tempering potential exuberance in financial markets.
Concurrently, economic indicators provided a mixed backdrop. US small-business sentiment showed signs of modest improvement. However, the World Bank underlined persistent trade concerns by revising its 2025 growth forecast for the US downward to 1.4%.
In a significant show of long-term investment confidence, asset manager Blackstone announced plans to deploy up to $500 billion in Europe over the next decade, signaling belief in market resilience despite existing global headwinds linked to trade uncertainty.