CNBC Daily Open: ‘Good reports’ from U.S.-China talks could push S&P 500 to new high, analysts say

Trade negotiators from the U.S. and China have met in London, and talks are expected to continue Tuesday, a source familiar with the situation told CNBC’s Megan Casella.

It seems that coaxing China to relax its rare earths export curbs is at the top of America’s agenda, according to a CNBC interview with U.S. National Economic Council Director Kevin Hassett. If China’s actions late last week — when it seemingly gave Western automakers concessions regarding those minerals — are any indication, Beijing could be willing to accede to the request.

The world’s second-biggest economy would demand reciprocity. On June 2, Beijing bristled at Washington’s tighter grip on exports of chip design software to China. It’s a good thing, then, that Washington also appears to be in a conciliatory mood. “Our expectation is that … immediately after the handshake, any export controls from the U.S. will be eased,” Hassett said on CNBC’s “Squawk Box.” Indeed, Trump has reportedly authorized Treasury Secretary Scott Bessent’s team to lift those curbs, according to The Wall Street Journal, and has described receiving “good reports” from the U.S. contingent.

If the U.S.-China talks go well, there’s a chance the S&P 500, only around 2% off its February high as of Tuesday morning Singapore time, could reach a new peak, noted the JPMorgan trading desk.

That’d be something to cheer, of course. But it’s slightly disappointing that the S&P could have continued scaling heights from February, or at least broken its closing high much earlier in the year, if not for truculent trade policy from the White House — which, as is evident from the meeting between U.S. and China, governments are still trying to undo.

U.S.-China talks set to go into Day 2
U.S. President Donald Trump’s top trade officials met Chinese counterparts in London on Monday for talks aimed at resolving their trade dispute — particularly with regard to mineral exports. Discussions are set to continue Tuesday. Late last week, in an apparent olive branch, China seemed to offer U.S. and European auto giants something of a reprieve regarding its exports of rare earth elements.

Markets inch up globally
U.S. stocks edged up Monday. The S&P 500 added 0.09%, the Dow Jones Industrial Average was mostly flat, and the Nasdaq Composite rose 0.31%. Asia-Pacific markets rose Tuesday. South Korea’s Kospi index was up 0.38% at 1:30 p.m. Singapore time. Analysts from Macquarie Group say they think the country’s stock market will rally and enter a bull market on the back of “expansionary fiscal policy” from the new government.

A new ‘Liquid Glass’ look for Apple’s iOS
Apple held its annual Worldwide Developers Conference keynote on Monday. At the event, the company announced a redesign to its iOS system called “Liquid Glass,” a virtual glass look that was inspired by the Vision Pro and the most significant redesign of its operating system since 2013. Investors were underwhelmed by the announcements — which lacked developments on the AI front — and sent shares down 1.2%.

UK in a ‘Goldilocks’ moment: Nvidia CEO
“The U.K. is in a Goldilocks circumstance,” Nvidia CEO Jensen Huang said Monday on a panel with British Prime Minister Keir Starmer and Investment Minister Poppy Gustafsson. “You can’t do machine learning without a machine — and so the ability to build these AI supercomputers here in the U.K. will naturally attract more startups,” Huang said, though he added that the country lacks homegrown AI infrastructure.

[PRO] New record for S&P soon?
The S&P 500 ticked higher on Monday and continues to chip away at the gap to a new record high. The broad-based index is just 2% below its record close set in February. Several events in the days ahead could prove to be the catalyst that vaults it over the top, according to the JPMorgan trading desk.

China’s homegrown coffee giants are brewing up a U.S. expansion

Chinese beverage chains are redefining coffee culture in the country — and now they’re trying to win over customers in the U.S. and beyond.

Luckin Coffee, China’s largest coffee chain, has expanded aggressively in China and overtaken Starbucks on the mainland, with more than twice as many outlets. After venturing into Singapore, Hong Kong and Malaysia, Luckin is set to take its biggest leap yet with plans to open a branch in lower Manhattan.

“New York is probably culturally the best testing ground for an international brand to expand into, especially a Chinese one,” said Bernstein senior analyst Danilo Gargiulo, citing the city’s diversity and large base of young consumers. “But it’s also the most saturated, one of the most competitive markets.”