Trade talks between the U.S. and China are gaining traction with a second meeting in London, showcasing signs of positive progress. Commerce Secretary Howard Lutnick suggests negotiations have been positive, while Treasury yields show easing after two days of discussions. The potential for a breakthrough is evident, potentially influencing the S&P 500 and setting expectations for a new ATH. This comes as China’s exports to the U.S. plunged in May, reflecting a complex economic landscape. Despite this, President Trump expresses optimism about the talks, and the World Bank warns of sluggish global growth due to escalating trade barriers. Meanwhile, key figures like Kevin Hassett suggest easing export controls on semiconductors in exchange for accelerated rare earth mineral deliveries from China. The impact is visible in market sentiment, with the FTSE 100 index hitting a record close in anticipation of positive outcome.