China’s state media reported that US President Donald Trump and Chinese President Xi Jinping spoke over the phone
The call focused on finalizing a deal to allow Chinese-owned TikTok to continue operations in the US and on measures to ease trade frictions between the world’s two biggest economies.
Wall Street keeps a close watch on Xi-Trump talks.
Wall Street had a strong week, buoyed by hopes the Fed would soon cut interest rates.
Trump and Xi’s call showed encouraging signs, which could further intensify momentum.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, told Reuters that progress on a TikTok deal could lift markets in the near term. He added that it may also indicate easing US-China trade tensions, providing an additional boost.
“The Trump-Xi call is the clearest short-term catalyst, with the potential to influence both TikTok’s future and the direction of wider trade discussions,” Britzman said.
LISTEN: How is China bringing AI into its classrooms?
For Xi, artificial intelligence (AI) remains a top priority.
The Chinese Ministry of Education has rolled out new guidelines to teach AI at every grade level, with such education now starting at the age of six in the country.
Could a Trump-Xi summit take place this year?
China has proposed hosting a formal summit between the two leaders, but the US has yet to agree.
Advances in trade talks and steps to tackle fentanyl trafficking are expected to set the stage for a meeting later this year, potentially before or during the Asia-Pacific Economic Cooperation forum in South Korea on October 31.
Sun Yun, director of the China program at the Washington-based Stimson Center, said both the US and China “are eager for the leadership summit to take place, though the outcome depends on the trade deal and what each side can secure from the meeting.”
Jyoti Gupta 
Harsh Kumar