The Dow Jones Industrial Average climbed 0.25% on Tuesday, following a second day of high-stakes trade talks between the U.S. and China in London. Commerce Secretary Howard Lutnick expressed optimism about the negotiations’ progress, suggesting a resolution could be near as both sides attempt to resolve key issues, including export controls. However, cautious investors remained watchful for any breakthroughs, as Chinese markets experienced volatility with early dips reflecting investor concerns. President Trump warned of potential roadblocks from China, despite preliminary signs of optimism from officials. Meanwhile, U.S. small business sentiment improved in May for the first time since September due to easing tariff concerns and anticipation about a tax-and-spending bill, but some firms remained wary of the broader outlook. The World Bank lowered its US growth forecast to 1.4% for 2025, citing continued trade uncertainty. Blackstone’s investment plans in Europe are also generating interest with a promise to invest up to $500 billion over the next decade.