Trump-Xi Meeting Set to Impact Nvidia and Boeing Stocks
The upcoming meeting between US President Trump and Chinese President Xi Jinping is set to be a market event, with the tariff truce between the two countries expiring in November. Two S&P 500 stocks, Nvidia (NVDA) and Boeing (BA), are particularly exposed to the outcome of the meeting.
Nvidia has seen its China revenue shrink significantly this year, with CEO Jensen Huang stating that the company ships less than 1% of its data center revenue to customers in China. The company's forward guidance explicitly excludes China data center compute revenue, making any licensing breakthrough a pure addition to an already growing business.
Boeing, on the other hand, has a significant order from China committed to it, but no signed agreement yet. CEO Dennis Muilenburg has tied any large order to a government-to-government agreement. The stock price of Boeing is down 8.94% this year, while Nvidia is up 23.01%
The meeting between Trump and Xi could have a significant impact on the market, with some analysts predicting that it could move the index by roughly a percentage point. However, any outcome will depend on the joint statement released after the meeting, particularly whether the word 'delivery' is mentioned.