Major United States benchmark averages ended little changed on Monday (Tuesday AEST), as market participants monitored trade negotiations between the United States and China.
The Dow Jones Industrial Average finished flat at 42,761.8, while the S&P 500 edged up 5.5 points, or 0.1%, to close at 6,005.9. The Nasdaq Composite rose 61.3 points, or 0.3%, to end the session at 19,591.2.
Trade officials from both countries met in London, with the U.S. delegation comprising Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer.
Kevin Hassett, Director of the National Economic Council, appeared on CNBC’s Squawk Box on Monday, stating that the talks are aimed at securing firm commitments from China regarding exports of critical minerals.
Hassett said, “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, and then we can go back to negotiating smaller matters.”
Among notable movers, Qualcomm surged 4.1% after the company announced a US$2.4 billion (A$3.68 billion) deal to acquire semiconductor maker Alphawave.
The news has also boosted sentiments across the chip sector, with Advanced Micro Devices rising 4.8%, Texas Instruments gaining 3.5%, and NVIDIA adding 0.6%.
Apple, however, slipped 1.2% following its 2025 Worldwide Developers Conference. The event featured the company’s first major iPhone operating system redesign since 2013, but investors appeared unimpressed by the update.
Looking ahead, market attention is shifting to upcoming inflation data, with both the consumer price index (CPI) report and the producer price index (PPI) set for release later in the week.
On the bond markets, yields declined, with the 10-year Treasury rate down 0.7% to 4.476% and the 2-year yield easing 0.8% to 4.005%.
