U.S. Secretary of Commerce conveys positive news from talks, S&P and Nasdaq hit intraday highs, and the Chinese concept stock index expands its gains

On June 10th, Tuesday, Eastern Time, as the U.S. stock market approached the closing, U.S. Secretary of Commerce Gina Raimondo mentioned talks, which were seen as positive for the smooth progress of discussions. The U.S. stock market responded by rising, with popular Chinese concept stocks overall expanding their gains.

The two major U.S. stock indices, the S&P 500 and the Nasdaq, accelerated their rise, both refreshing their daily highs near the close. The S&P rose over 0.6%, the Nasdaq rose over 0.7%, and the Dow Jones saw its intraday gains expand to over 110 points, approaching the daily high set during the lunch break.

Chip stocks also refreshed their daily highs near the close, with the Philadelphia Semiconductor Index rising nearly 2.3% intraday.

The Nasdaq Golden Dragon China Index (HXC) saw its intraday gains expand to over 0.3%, approaching the daily high refreshed earlier in the U.S. stock market.

The offshore renminbi (CNH) exchange rate against the U.S. dollar saw a slight narrowing of its decline, recovering to 7.1890 near the close, with an intraday drop of less than 60 points.

The market's rapid response to news related to the China-U.S. talks reflects global expectations for the two major economies to resolve differences through consultation.

According to Xinhua News Agency, on June 9th, Monday, He Lifeng, a member of the Political Bureau of the Central Committee of the Communist Party of China and Vice Premier of the State Council, began the first meeting of the China-U.S. economic and trade consultation mechanism with the U.S. side in London, UK. According to media under CCTV, on June 10th, the first meeting of the China-U.S. economic and trade consultation mechanism entered its second day, starting in the morning and continuing after lunch.

Earlier on June 10th, Xinhua News Agency published an article stating that international public opinion believes the China-U.S. economic and trade consultations are significant, directly related to the paths for resolving trade disputes between China and the U.S., and concerning the global economic growth outlook.

The article noted that nearly a month ago, from May 10th to 11th, in Geneva, Switzerland, China and the U.S. held high-level economic and trade talks and issued a joint statement, agreeing to establish the China-U.S. economic and trade consultation mechanism, marking an important step towards resolving economic and trade issues through dialogue and consultation. The Geneva economic and trade talks undoubtedly set a good precedent, proving that dialogue and cooperation are always the only correct choice for both China and the U.S., and the space for mutual benefit and win-win outcomes between the two countries far exceeds their differences and conflicts The main members of the U.S. delegation include U.S. Treasury Secretary Janet Yellen, U.S. Trade Representative Katherine Tai, and U.S. Secretary of Commerce Gina Raimondo. Among them, Yellen and Tai participated in the Geneva talks, while Raimondo is a new addition.

Yuyuantan Tian published an interpretation on June 10, stating that Raimondo comes from the Department of Commerce, which is responsible for industry and export controls. The article mentions that, according to media reports, Raimondo's participation in this new round of talks may indicate that the U.S. is willing to reconsider some technology restrictions that could hinder China's long-term development goals. The article points out:

"Raimondo's inclusion also means that the Chinese side has the right to continue to express opinions, seek explanations, and respond regarding the export controls implemented by the U.S. side."

The article from Yuyuantan Tian cites reports from U.S. media stating that no one wants the talks to reach an impasse, and then points out:

"Prior to this, the Chinese side had already made it clear: the U.S. side should view the progress made realistically and lift the negative measures imposed on China. Regardless of who comes from the U.S. side, it should be clearly understood that the Chinese side is sincere, but also principled."

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