Global stock markets pushed to new heights on Thursday, with Wall Street’s key benchmarks setting fresh records as a high-stakes presidential summit in China overshadowed persistent geopolitical risks.
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S&P 500 hits new record above 7,400 as tech rallies on China summit hopes
The S&P 500 climbed 0.6% to a new all-time high of 7,444.25 and the tech-heavy Nasdaq Composite jumped 1.2% to its own record of 26,402.34, as investors reacted to developments from President Donald Trump's meeting with Chinese leader Xi Jinping.
"Obviously the world awaits news from the first Trump/Xi meeting today," analysts at Deutsche Bank said in a note, highlighting the intense focus on the summit's potential outcomes for trade and global stability.
The rally was driven by technology stocks, with Nvidia Corp. gaining after its CEO was confirmed as part of Trump's delegation. In contrast, the Dow Jones Industrial Average edged down 0.1% to 49,693.20. European bourses were broadly higher, with Germany's DAX gaining 1.4%, while Asian markets were mixed.
The record-setting session underscores a market balancing cautious optimism over U.S.-China dialogue against tangible risks from the ongoing war in Iran and pointed warnings from Beijing over Taiwan. Investors are weighing the prospect of enhanced economic cooperation and potential tech deals against the backdrop of a fragile geopolitical landscape and elevated oil prices.
Summit Focuses on Taiwan and Iran
Talks between the two leaders were described as "constructive," with both sides emphasizing the need for a stable relationship. However, Chinese state media reported that Xi delivered a stern warning to Trump that the "Taiwan question is the most important issue in China-U.S. relations," cautioning that mishandling it could lead to "clashes and even conflicts." The White House did not mention Taiwan in its initial readout.
On the war in Iran, the White House said the leaders agreed that the Strait of Hormuz must remain open for the free flow of energy and that Iran can never have a nuclear weapon. China, the largest buyer of Iranian oil, holds significant economic leverage. Brent crude, the international benchmark, was trading up 0.2% at $105.87 per barrel, well above its pre-war level of around $70.
Tech CEOs Court Beijing
A significant feature of the summit was the presence of top American technology executives, including Nvidia's Jensen Huang, Tesla's Elon Musk, and Apple's Tim Cook. Their inclusion raised expectations for breakthroughs in market access, particularly for Nvidia, which is seeking to sell its advanced H200 AI chips to Chinese firms.
"The two sides discussed ways to enhance economic cooperation between our two countries, including expanding market access for American businesses into China," a White House official said. The focus on technology comes as the U.S. aims to maintain its lead in artificial intelligence while navigating complex national security considerations.
This article is for informational purposes only and does not constitute investment advice.
[1] Trading Day: Summits, in Beijing and stocks[2] World markets rise on Trump-Xi summit hopes[3] China's Xi warns Trump about "conflicts" if Taiwan isn't "handled properly"[4] TSX trades higher amid Trump-Xi summit By Investing.com[5] Trump-Xi Summit: US and China Should Be ‘Partners’, Not ‘Rivals’
