The news cycle barely stopped to breathe today.

First, Trump meets Xi.

U.S. President Donald Trump met Chinese leader Xi Jinping in South Korea on Thursday, during which he struck a 1-year rare earths agreement with China and lowered fentanyl-related tariffs on Beijing to 10% from 20%, effective immediately.

China, in return, will resume buying soybeans and other agricultural products from America, Trump added.

Second, interest rates.

The U.S. Federal Reserve lowered rates by 25 basis points, as expected by traders. But Chair Jerome Powell cautioned that another cut in December, which the market had been pricing in with more than 90% certainty, “is not a foregone conclusion.”

Finally, Big Tech earnings.

While Alphabet, Meta and Microsoft reported earnings that beat analyst expectations, their capex stole the show. All three companies estimated they will outspend earlier projections, and capex growth in 2026 will likely outpace the rate this year.

The crux is that spending on artificial intelligence isn’t going to slow down, at least for the next year, thanks to increasing demand for AI services. Fears of the dotcom bubble repeating can be deferred for now — even Powell suggested so.

That’s a wrap for today. Breathe while you can — Apple and Amazon are up next.

Trump and Xi meet in South Korea. In their first meeting in six years, Trump halved fentanyl-related tariffs on China to 10% from 20% and said he had struck a 1-year agreement with Beijing on rare earths and critical minerals, while China will resume U.S. soybean purchases.

Fed cuts rates by 25 basis points. That brings the U.S.’ benchmark interest rate to a range of 3.75%-4%. Two out of 10 governors dissented with the move: Trump-appointee Stephan Miran wanted a half-point cut while Jeffrey Schmid voted for no cuts.

Tech titans report earnings. Alphabet, Meta and Microsoft reported earnings Wednesday after the bell. All beat Wall Street expectations on revenue and earnings per share. AI continues to be a driving force for sales.

U.S. markets traded mixed Wednesday. The Nasdaq Composite was the only major index that rose. Asia-Pacific stocks mostly fell Thursday. Mainland Chinese and Hong Kong markets fell as investors assessed the Trump-Xi meeting. Japan’s Nikkei 225 inched up as the Bank of Japan held rates steady.

[PRO] An ‘explosive’ payoff in one AI application. Cathie Wood, founder and chief executive of ARK Invest, told CNBC that her firm is focusing on pure plays in the innovation space, which she thinks can create “explosive growth opportunities.”

Trump’s rare earth deals target China’s dominance — here’s why change won’t come soon

Over 10 days, Trump cemented deals with Australia, Malaysia, Cambodia and most recently, Japan, to bolster the supply of rare earths and other critical minerals that are crucial for the making of batteries, automobiles, defense systems and computing chips.

While Trump’s deals will bring much-needed financial support to the industry and may eventually challenge Beijing’s stranglehold over rare earths, experts said the efforts will be costly and take years to bear fruit.

— Anniek Bao