The Google corporate office at The Hub constructing in Warsaw, Poland on Sept. sixteenth, 2025.
Beata Zawrze | Nurphoto | Getty Images
The news cycle barely stopped to breathe today.
First, Trump meets Xi.
U.S. President Donald Trump met Chinese leader Xi Jinping in South Korea on Thursday, during which he struck a 1-year rare earths agreement with China and lowered fentanyl-related tariffs on Beijing to 10% from 20%, effective immediately.
China, in return, will resume buying soybeans and other agricultural products from America, Trump added.
Second, rates of interest.
The U.S. Federal Reserve lowered rates by 25 basis points, as expected by traders. But Chair Jerome Powell cautioned that one other cut in December, which the market had been pricing in with greater than 90% certainty, “shouldn’t be a foregone conclusion.”
Finally, Big Tech earnings.
While Alphabet, Meta and Microsoft reported earnings that beat analyst expectations, their capex stole the show. All three firms estimated they’ll outspend earlier projections, and capex growth in 2026 will likely outpace the speed this yr.
The crux is that spending on artificial intelligence is not going to decelerate, no less than for the subsequent yr, because of increasing demand for AI services. Fears of the dotcom bubble repeating could be deferred for now — even Powell suggested so.
That is a wrap for today. Breathe while you may — Apple and Amazon are up next.
What you might want to know today
Trump and Xi meet in South Korea. Of their first meeting in six years, Trump halved fentanyl-related tariffs on China to 10% from 20% and said he had struck a 1-year agreement with Beijing on rare earths and important minerals, while China will resume U.S. soybean purchases.
Fed cuts rates by 25 basis points. That brings the U.S.’ benchmark rate of interest to a spread of three.75%-4%. Two out of 10 governors dissented with the move: Trump-appointee Stephan Miran wanted a half-point cut while Jeffrey Schmid voted for no cuts.
Tech titans report earnings. Alphabet, Meta and Microsoft reported earnings Wednesday after the bell. All beat Wall Street expectations on revenue and earnings per share. AI continues to be a driving force for sales.
U.S. markets traded mixed Wednesday. The Nasdaq Composite was the one major index that rose. Asia-Pacific stocks mostly fell Thursday. Mainland Chinese and Hong Kong markets fell as investors assessed the Trump-Xi meeting. Japan’s Nikkei 225 inched up because the Bank of Japan held rates regular.
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And at last…
Chinese President Xi Jinping and U.S. President Donald Trump
Sergey Bobylev | Kent Nishimura | Reuters
Trump’s rare earth deals goal China’s dominance — here’s why change won’t come soon
Over 10 days, Trump cemented deals with Australia, Malaysia, Cambodia and most recently, Japan, to bolster the provision of rare earths and other critical minerals which are crucial for the making of batteries, automobiles, defense systems and computing chips.
While Trump’s deals will bring much-needed financial support to the industry and will eventually challenge Beijing’s stranglehold over rare earths, experts said the efforts might be costly and take years to bear fruit.
— Anniek Bao
