Wall Street sees ‘nothing of real substance’ in Trump’s China trade deal-and stocks are selling off

Key Points:

• Global stock markets fell sharply following President Trump’s summit with China’s Xi Jinping, as investors were unimpressed by vague trade deal announcements and lack of concrete progress, with South Korea’s KOSPI dropping over 6% and S&P 500 futures down 1%.
• Boeing shares declined after China committed to purchasing only 200 aircraft, fewer than previous expectations and past deals, contributing to market disappointment regarding the trade discussions.
• Analysts expressed skepticism about the summit’s outcomes, noting no significant breakthroughs on trade stability or Iran conflict resolution, while rising oil prices above $109 per barrel reflect ongoing geopolitical tensions affecting inflation and bond markets.
• Retail investors have increased their market activity by 28% since April, outperforming institutional investors in favorite stocks, holding about $12 trillion in equities and accounting for roughly 20% of total U.S. equity trading volume.
• Despite economic uncertainties and fuel shortages, travel spending remains robust among middle- and high-income Americans, with low-income groups cutting back except for cruise vacations, which continue to see steady spending.