Markets Rally After US-China Framework, Russia Sanctions

Top U.S. and Chinese negotiators said they reached a “very substantial framework” in Kuala Lumpur that could lay the groundwork for a Trump–Xi meeting and avert planned 100% tariffs and delay rare-earth export curbs. The prospect of a trade thaw, together with recent U.S. and EU sanctions that targeted Russia’s Rosneft and Lukoil and tightened the supply outlook, lifted energy markets and pushed Brent, WTI and refined-fuel futures higher. Global equities rallied to fresh record highs as easing trade tensions, enthusiasm around artificial intelligence—led by Nvidia’s strong bookings and talk of possible easing of chip curbs—and anticipation of major tech earnings propelled the tech-heavy advance. Markets also priced in a more dovish Federal Reserve, with traders expecting a 25 basis-point cut at the current FOMC meeting, and diplomatic wins including a reported U.S.-South Korea trade agreement added to the upbeat backdrop. Asian markets joined the gain as regional tech suppliers and Chinese signals of cooperation reinforced momentum, though the framework remains preliminary and investors will watch leader meetings and the real-world impact of sanctions before concluding a sustained recovery is underway.