US stock market: Wall Street is turning its attention to the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, with investors watching for signs of a thaw in relations between the world’s two largest economies. The talks come at a crucial juncture, with trade, artificial intelligence, rare earths and Taiwan expected to feature prominently on the agenda.
Xi’s visit to Washington, beginning 23 September, marks his first US state visit in a decade. The summit is also significant for financial markets because the current US-China tariff truce is due to expire on 10 November. Investors will therefore be looking for any indication that the agreement could be extended, particularly as both countries continue to negotiate over trade commitments and strategic minerals.
Rare earths have emerged as a particularly important sticking point. China remains a dominant force in processing several critical minerals, while Washington is seeking greater certainty about supplies. US officials have raised concerns about the pace of Chinese rare-earth commitments under the existing arrangement.
US stocks near records as oil prices ease
Artificial intelligence is another key area to watch. The two countries have recently moved toward establishing an AI dialogue, even as competition over advanced technology and semiconductor capabilities remains intense.
Against this geopolitical backdrop, US equities remained close to record levels on Tuesday. The S&P 500 was largely unchanged, while the Nasdaq Composite gained 0.5% and reached another record. The Dow Jones Industrial Average slipped 0.4%.
Oil prices also eased, providing some relief to markets. Brent crude traded below $100 a barrel after falling from levels near $110 last week, although prices remain substantially above the roughly $72 level seen before the US-Iran conflict.
For investors, the Trump-Xi meeting could therefore become an important test for global trade, supply chains and market sentiment heading into the final quarter of 2026.
Xi Jinping US visit: How will it impact US stock market ?
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, expects Chinese President Xi Jinping’s US visit to produce positive outcomes, particularly for financial markets.
Vijayakumar said the short-term US-China trade agreement, which is set to expire in November, is likely to be renewed. He also noted that US President Donald Trump’s authority to impose 100% tariffs on Chinese imports of Russian crude could be viewed as a bargaining tool.
“If implemented, China could retaliate, with adverse consequences for both countries. That could also have political implications for the Republican Party ahead of the mid-term elections in November,” Vijayakumar said. Overall, he expects the visit to deliver positive outcomes, which could support market sentiment.
Viram Shah, Founder & CEO of Vested, said financial markets have already factored in the likelihood of an extension of the existing US-China trade truce.
“The S&P 500 rose about 1.5% on Monday, its best session since early August, while the Nasdaq has closed at a record for two consecutive sessions. This suggests investors have largely priced in the base case — an extension of the Busan trade truce, which expires on November 10,” Shah said.
According to Shah, markets are not pricing in a broader trade deal. Instead, the key variable to watch is the duration of any extension. Washington has proposed an extension of three to six months, while US officials have raised concerns over China’s progress on its rare-earth commitments.
“A short extension would effectively function as a compliance review, pushing the tariff question into early 2027. A one-year extension, on the other hand, would provide a clearer signal for global supply chains,” Shah said.
He added that the impact on US equities is likely to remain concentrated in sectors such as semiconductors, hardware and industrials that have significant exposure to Chinese demand or rare-earth supplies.
For Indian investors with exposure to US markets, Shah said the summit should be viewed primarily as a near-term market event rather than a shift in the long-term investment outlook. He noted that interest rates, oil prices and AI-related earnings are likely to remain more important drivers of US equity returns over the coming year.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
