US-China possible trade truce, Big Tech earnings preview, Trump raises tariffs on Canada

Group 1: Trade Developments - The U.S. and China are reportedly close to a substantial trade agreement, with Treasury Secretary Scott Besson indicating that a tariff hike may be avoided and that China will resume soybean purchases and delay a rare earth export ban by one year [8][9]. - President Trump expressed optimism about reaching a deal with Chinese President Xi Jinping during their upcoming meeting [7][8]. - Tensions are rising between the U.S. and Canada, with Trump announcing a 10% tariff on Canada following a political ad that criticized tariffs [9][10]. Group 2: Tech Earnings - Major tech companies, including Meta, Microsoft, Alphabet, Amazon, and Apple, are set to report earnings, with investors keenly awaiting results that meet high expectations driven by the AI boom [3][5][12]. - Microsoft is expected to provide updates on its partnership with OpenAI, while Amazon's performance in AI and the impact of an AWS outage will be scrutinized [12][14][16]. - Apple is facing scrutiny over iPhone sales momentum, with early reports indicating increased sales of the iPhone 17 compared to the iPhone 16, but concerns about slowing momentum have been raised [17][18]. Group 3: Federal Reserve Rate Decision - The Federal Reserve is widely expected to cut interest rates by 25 basis points for the second consecutive meeting, despite a lack of official government data due to the shutdown [24][25]. - Fed Chair Jerome Powell is anticipated to maintain a cautious approach, emphasizing that decisions will be made on a meeting-by-meeting basis [26][52]. - The search for the next Fed chair has been narrowed to five candidates, with an announcement expected by the end of the year [29][28]. Group 4: Corporate Acquisitions - Novartis is acquiring Avidity Biosciences for approximately $12 billion to enhance its portfolio in rare muscle disorder treatments [31]. - Huntington Bank is set to acquire Cadence Bank for $7.4 billion, marking its second major acquisition this year to expand its presence in southern and southeastern states [33]. - Keurig Dr Pepper raised its full-year sales forecast and reported strong sales across various segments, including a return to growth in its coffee business [35].