U.S., Chinese Officials Discuss Future Talks Between Biden and Xi

The ongoing U.S.-China negotiations could lead to a stabilization of relations, which may positively impact sectors like technology and trade that are sensitive to international relations. If the talks yield positive results, companies in technology and manufacturing could see improved stock performance due to eased tensions.

However, persistent disputes over technology export controls and Taiwan suggest ongoing risks. Companies heavily involved in defense or with significant operations in China might face operational uncertainties, thus potentially leading to a negative forecast for defense contractors and tech firms that rely extensively on exports to China.