london trade talks spark chip stock surge: what's driving the market?
London, Tuesday, 10 June 2025.
us-china trade talks in london concluded today, and chip stocks are already seeing a boost. nvidia’s stock price jumped, contributing to the nasdaq’s higher close. the discussions centered on easing trade tensions and lifting restrictions on the semiconductor industry. sources say that the us is considering easing restrictions on chips in exchange for rare earth minerals. aviation stocks also saw a rise of 10%, while apple’s stock took a hit after its product release.
Nvidia’s stock performance and market outlook
Nvidia’s stock experienced a notable increase amid the trade discussions, reflecting positive market sentiment [1]. The potential easing of restrictions could significantly benefit Nvidia, which relies on global supply chains and market access [GPT]. This development arrives as the US considers lifting chip restrictions in exchange for China relaxing its rare earth export controls [2]. However, it’s important to note that White House advisor Kevin Hassett indicated that any relaxation of export controls would likely exclude Nvidia’s most advanced AI chips, which are subject to concerns over potential military applications [2].
broader market impact and nasdaq’s rise
The rise in chip stocks, including Nvidia and AMD, contributed to the Nasdaq’s higher close [1]. AMD notably rose by 4.77% [1]. The Nasdaq Golden Dragon China Index also saw a rise of 2.07%, reaching 7440.59 points [1]. These market movements reflect the interconnectedness of global trade policies and the performance of technology stocks [GPT]. Conversely, Apple’s stock experienced a decline following its product release, illustrating the diverse factors influencing individual stock performance [1].
negotiation dynamics and strategic implications
The US-China trade talks in London represent the second formal consultation since the trade war began [3]. The discussions aim to address export controls and their impact on chip stocks and Huawei [3]. There are reports that Trump is considering easing restrictions on chip manufacturing software, jet engine parts, and ethane sales [3]. The talks are a result of president trump calling china, and are viewed as trump giving in to china [4]. The talks also include tariffs and rare earth minerals [4].
huawei’s position in the chip landscape
Amid these developments, Huawei CEO Ren Zhengfei acknowledged that Huawei lags behind Nvidia in AI chip technology [3]. Zhengfei stated that Huawei is still one generation behind the U.S. in single chips [3]. This acknowledgment underscores the challenges Huawei faces due to US government restrictions on its access to advanced chip manufacturing technology [3]. The gap in AI chip capabilities presents a significant hurdle for Huawei’s growth, particularly in cloud computing and AI-related sectors [3].
expert opinions and market uncertainties
A financial analyst noted that the market is reacting to the uncertainty surrounding future trade relations [5]. The US-China trade dynamic is complex, with both sides potentially using export controls to disrupt supply chains [2]. The US is particularly focused on securing access to rare earth minerals, essential for military applications and various industries [4][2]. The situation remains fluid, with further discussions planned for late July in Beijing [3]. Any investment decisions should be made cautiously, considering the inherent market risks [5].