Nasdaq Rises as Investors Watch US-China Tech Talks

The Nasdaq gained 0.3% as markets reacted to signs of progress in US-China trade talks, with President Trump reporting "good" updates from London meetings. US and European equity futures edged higher, while the dollar firmed slightly, amid hopes for a deal on tech export controls and rare earths. Meanwhile, vaccine stocks including Moderna and AstraZeneca may face delays after US Health Secretary RFK Jr. removed the CDC’s vaccine advisory panel.

Equities

The FTSE 100 ended Monday flat at 8,832.28 after four straight weeks of gains, as traders paused ahead of a second day of trade talks between the US and China in London. The FTSE 250 rose 0.6%, supported by sharp gains in selected stocks.

Spectris jumped 60% after it said it had received a takeover proposal from Advent International, valuing the scientific instruments maker at £37.35 per share. Alphawave shares rose 18.9% after US chipmaker Qualcomm agreed to acquire the semiconductor firm in a deal worth around $2.4 billion.

WPP dropped 2.8% after announcing that CEO Mark Read plans to retire by the end of 2025. Asset manager M&G rose 3% after UBS upgraded the stock to “buy” from “neutral”. The non-life insurance sector was down 1.3%, and pharma stocks fell 0.4% as investors locked in recent gains.

In the US, the S&P 500 rose 0.09% to 6,005.88, supported by strength in large-cap tech stocks. The Nasdaq climbed 0.31% to 19,591.24, while the Dow Jones Industrial Average was flat at 42,761.76.

Amazon gained more than 1% after announcing a $20 billion investment to expand its data centre infrastructure in Pennsylvania, reflecting its AI-driven growth strategy. Alphabet also rose over 1%. Apple slipped 1.2% after its annual developer event failed to impress investors, with few standout updates announced.

Warner Bros Discovery fell nearly 3% after the company confirmed plans to split its studios and streaming operations from its traditional cable business. The announcement followed an earlier share price jump of up to 13% on speculation of a major corporate shift.

McDonald’s dropped 0.8% after Morgan Stanley downgraded the fast-food chain from “overweight” to “equal-weight”. Robinhood fell almost 2% after being left out of the S&P 500’s latest rebalancing, despite recent speculation about its inclusion.

Forex & Commodities

The US dollar edged higher in early Tuesday trading, supported by cautious optimism around ongoing US-China trade talks in London. The dollar index was up 0.2% at 99.19, reversing part of last week's decline and weighing on competing currencies. The euro eased to $1.14, while sterling held around $1.3543, both softer against the greenback. The Japanese yen slipped 0.2% to 144.90 after Bank of Japan Governor Kazuo Ueda indicated rate hikes may be delayed, pushing back expectations for near-term policy tightening. Despite this, the yen remains up more than 8% against the dollar for the year.

Gold fell as the stronger dollar and lack of clear progress in trade talks dulled its appeal. Spot gold dropped 0.6% to $3,307.72 per ounce, while US gold futures slipped 0.8%. Traders were hesitant to build positions ahead of Wednesday’s US inflation print, which could shape expectations for the Federal Reserve’s next steps. Analysts warn a stronger-than-expected CPI figure could further support the dollar and pressure gold, though any signs of inflation easing might revive demand for the metal.

Oil prices gained for a second session, with Brent crude up 0.3% to $67.26 per barrel and WTI rising to $65.47. The upward move was driven by hopes that a breakthrough in the US-China talks could improve the global demand outlook. On supply, OPEC+ output inched higher in May, though modest increases from Iraq, Saudi Arabia, and the UAE helped limit overall growth. A potential Iranian nuclear deal remains a risk factor, as any relaxation of US sanctions could increase crude exports from Tehran.