Trump-Xi Meeting Looms Large as US Stock Market Prepares for Key Catalysts

The US stock market is bracing for several key events this week, including a meeting between President Donald Trump and Chinese counterpart Xi Jinping.

The two leaders will discuss various issues, including artificial intelligence, trade, and ongoing conflicts in the Middle East. A breakthrough on any of these fronts could have significant implications for the stock market, potentially boosting shares of companies like Boeing (BA) or Nvidia (NVDA).

Costco Wholesale (COST), a major US retailer, will also release its quarterly earnings on Thursday, providing insight into consumer spending habits. However, analysts expect the numbers to have only a muted impact on the market.

The Federal Reserve's decision to raise interest rates last week had a relatively minor effect on the S&P 500 and Dow Jones indices, but rising bond yields could weigh on stock prices. The US-China meeting and corporate earnings will likely take center stage this week.