Dow Jones opens higher as US – China trade talk begins in London

Wall Street’s major indices opened higher on Monday as investors kept a close eye on renewed U.S.-China trade talks aimed at easing tensions that have unsettled markets throughout the year. At the opening bell, the Dow Jones Industrial Average (.DJI) edged up 23.3 points, or 0.05%, to 42,786.19. The S&P 500 (.SPX) gained 4.3 points, or 0.07%, to start at 6,004.63, while the Nasdaq Composite (.IXIC) advanced 43.2 points, or 0.22%, to 19,573.14.

Top U.S. and Chinese officials met in London on Monday in an effort to ease a high-stakes trade dispute that has escalated beyond tariffs to include restrictions on rare earth minerals, critical components in global supply chains. The growing tensions have raised concerns about potential disruptions to key industries and broader impacts on global economic growth.

Talks took place at the historic Lancaster House, where negotiators aimed to revive momentum from a preliminary agreement reached last month in Geneva, which had briefly cooled tensions between Washington and Beijing. Since that agreement, however, U.S. officials have accused China of dragging its feet, particularly regarding the flow of rare earth exports.

U.S. economic adviser Kevin Hassett told media the U.S. delegation was seeking a firm commitment, a “strong handshake” from China on rare earths, following recent discussions between Presidents Donald Trump and Xi Jinping. He noted that while China had begun releasing shipments, the pace was slower than many U.S. companies considered acceptable.

Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Commerce Secretary Howard Lutnick were in attendance for the talks, along with China’s Vice Premier He Lifeng.

Hassett emphasised that resolving the rare earths issue was a priority and that once settled, broader negotiations on other trade matters would resume at a later date. China remains the dominant player in global rare earths production—elements essential for a range of technologies, including electric vehicle batteries, medical imaging devices, oil refining processes, and advanced defense systems.