What is the main purpose of Trump's trip to China amid the Middle East stalemate?

According to the news, Donald Trump is traveling to Beijing to seek a deal with Chinese President Xi Jinping, aiming to "open up China," and is accompanied by U.S. corporate executives including Nvidia CEO Jensen Huang.

How has the Middle East conflict and recent U.S. inflation data affected market expectations for Federal Reserve interest rate policy?

The growing economic toll of the Middle East conflict, combined with Tuesday's hotter-than-expected U.S. inflation data, has led traders to largely price out any chance of a Fed rate cut this year and increased expectations for a potential 25-basis-point hike at the December meeting — rising to over 35% from below 22% earlier in the week, per CME's FedWatch Tool.

Morning Bid: Locked in a Stalemate with Iran, Trump Heads to China

May 12, 2026

President Trump travels to China amid geopolitical tensions, with rare earth export curbs and crude oil stocks influencing global supply chains. Markets react to US inflation data and potential Fed rate hikes alongside major corporate earnings.

reuters

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