Tech Rally Fades Amid Disappointing Trump-Xi Summit Outcome

The tech-led rally in U.S. equities faded mid-week due to disappointing outcomes from the Trump-Xi summit, which only delivered a trade-truce extension without progress on tariffs or AI guardrails.

The 30-year Treasury yield reached its highest level since 2004, pushing long-end supply and energy-driven inflation risk to the forefront. Despite this, U.S. equities closed 1.23% higher for the week, with AI enthusiasm driving chip and megacap tech names.

Canadian equities followed a similar trend, returning -0.02%, largely driven by the energy sector's response to crude price fluctuations. European equities finished 0.10% higher, despite dollar strength and firmer oil prices capping gains.