Market Rundown: Trump Signs Rare Earths Deal with Japan, Fed Meeting Looms

US-Japan Rare Earths Deal

• 🤝 President Trump met with Japanese Prime Minister Shinzo Abe, signing a deal to secure the supply of rare earths.
• 💡 Japan has pledged to invest $550 billion in the US, potentially in areas like liquid natural gas, AI, and critical minerals.
• 🎯 Both nations aim to reduce China's dominance, which currently processes 90% of the world's rare earth supply.

Market Reactions to Trade Negotiations

• 📈 Markets globally saw an uptick following news of a potential US-China trade deal, with the US considering cutting tariffs and China postponing rare earth export controls.
• 🐂 Investors are optimistic that President Trump may soften his threatened tariffs ahead of his meeting with Chinese President Xi Jinping.

Federal Reserve Meeting and Policy Watch

• 📊 The Federal Reserve meeting begins today, with a quarter-point interest rate cut widely expected tomorrow.
• ⚠️ Investors will be closely monitoring comments regarding the end of quantitative tightening, as the Fed might conclude this process sooner than anticipated.

US Government Shutdown Impact

• ✈️ Over 7,000 flights in the US were delayed on Monday due to a shortage of air traffic control staff.
• 🚫 This shortage is a direct result of the ongoing US government shutdown, now in its fourth week, impacting federal employees' paychecks.