CNBC Daily Open: Trump-Xi summit delivers Wall Street boost
Hello, this is Dylan writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.
Wall Street was riding high as the first day of the U.S.-China summit raised hopes for a positive relationship reset and agreements from both sides.
Markets will be closely watching the second and final day of talks, to gauge how the developments at the summit ripple through trade, tech and energy.
U.S. stocks powered higher Thursday, with the S&P 500 posting its first close above 7,500, and the Dow Jones Industrial Average jumping 370 points to recapture the 50,000 level.
The performance was fueled by optimism around President Donald Trump's China visit, as well as strong earnings from Cisco Systems.
Day one of the high-stakes summit in Beijing saw Chinese President Xi Jinping and Trump agreeing to develop a "constructive China-U.S. relationship of strategic stability."
The two sides also discussed global conflicts, with Trump and Xi aligning on keeping the Strait of Hormuz open to restore energy flows through the critical waterway, according to a White House official.
Xi also met with American CEOs traveling with Trump, including Elon Musk and Tim Cook, and told them that China will "open wider" to foreign businesses.
In regard to commercial deals struck so far, Trump told Fox News that China will order 200 Boeing jets in a major win for the U.S. planemaker.
However, there was also some tough talk at the summit, with Xi warning Washington that mishandling Taiwan would put the U.S.-China relationship in "great jeopardy." Beijing considers Taiwan, a democratically self-ruled island, part of its territory, while the island's ruling party rejects that claim.
The summit is set to end today, and Trump has reportedly invited Xi Jinping to the White House for a visit on Sept. 24.
The tech world has also been exciting markets this week, with shares of AI chipmaker Cerebras skyrocketing 68% in their Nasdaq debut, lifting the company's market cap to $95 billion and highlighting the ongoing hunger for high-growth AI names.
In other headlines, SpaceX's IPO prospectus could drop as soon as next week in what's expected to be a record share sale, sources told CNBC.
Chinese parts are already in U.S. cars as lawmakers warn Trump against China auto deal
As President Donald Trump meets Chinese President Xi Jinping this week, lawmakers in both parties are warning the White House not to use the U.S. auto market as a bargaining chip in any deal with Beijing.
The warning stems in part from Trump's January suggestion that he could welcome Chinese automakers if they built vehicles in the U.S. with American workers — remarks that were later walked back but still rattled auto-state lawmakers, unions and industry groups.
"While the Administration is always seeking more investment into America's industrial resurgence, any notion that we would ever compromise our national security is baseless and false," White House spokesperson Kush Desai said in an email.