Xi-Trump meeting could still happen and tariffs are ony threats now, says PNC's Yung-Yu Ma

Market Overview - The market is experiencing significant downturns, with the NASDAQ down 800 points (3.5%) and the Dow down nearly 900 points, indicating a substantial sell-off [1] - This downturn is characterized by a "sea of red" in the market, causing concern among investors [1] US-China Relations - There remains a possibility for a meeting between President Trump and President Xi at the end of the month, despite recent tensions [2] - President Trump has only threatened tariffs, which have not yet been implemented, suggesting that negotiations between the US and China may still progress [2] Economic Uncertainty - The current market conditions are influenced by a combination of factors, including the government shutdown and associated layoffs, which contribute to economic uncertainty [3][4] - This uncertainty is causing businesses to reconsider hiring and expansion plans, leading to a pause in economic activity [4] Market Sentiment - Despite the current sell-off, some analysts believe that the downturn may be short-lived, with a strong macroeconomic picture and ongoing growth in AI adoption and innovation providing a potential floor for the market [5]