Market Beats | Trump, Xi Strike One-Year Truce That Calms Tensions; US Mortgage Rates Fall for Fourth Week; Meta to Sell at Least $25 Billion in Bonds; YouTube to Use AI to Upscale Low-Resolution Videos; Chipotle Cuts Outlook Again as Consumer Spending Weakens; Bitcoin Slumps Toward Range Lows; Core Scientific Shareholders Reject $9 Billion CoreWeave Merger

—— Trump, Xi Strike One-Year Truce That Calms Tensions; US Mortgage Rates Fall for Fourth Week; Meta to Sell at Least $25 Billion in Bonds; YouTube to Use AI to Upscale Low-Resolution Videos; Chipotle Cuts Outlook Again as Consumer Spending Weakens; Bitcoin Slumps Toward Range Lows; Core Scientific Shareholders Reject $9 Billion CoreWeave Merger

1. Trump, Xi Strike One-Year Truce That Calms Tensions

US President Donald Trump emerged from his meeting with Chinese leader Xi Jinping in South Korea on Thursday beaming, calling the conversation “truly great.”

The one-year truce agreed between the two nations is likely to stabilize relations between the world’s largest economies rather than resolve their fundamental differences, with both sides buying time to reduce mutual dependence in strategic sectors. The deal also underscored how much stronger China has become since Trump’s first term in office.

Trump’s decision to cut the fentanyl tariff and extend the existing truce on reciprocal tariffs will leave many goods facing levies of about 47%, keeping China’s massive manufacturing base competitive with regional rivals. Just as notably, the US agreed to suspend a rule expanding restrictions on blacklisted Chinese firms — a move suggesting that Xi’s sweeping rare earth export curbs may have successfully capped new US export controls, something Beijing has long sought.

Trump secured the resumption of US soybean sales and rare-earth flows, addressing key economic and political vulnerabilities at home. The deal for the sale of ByteDance Ltd.’s US TikTok operations also gives Trump a talking point with younger voters — that he “saved TikTok.” Meanwhile, Washington hawks were relieved that Trump did not grant China access to Nvidia Corp.’s flagship AI chips or ease US commitments to Taiwan.

For markets hoping to escape months of tit-for-tat escalation and uncertainty, Thursday’s outcome looks more like a temporary pause than a true resolution — a fragile ceasefire in what remains a prolonged competition for economic and technological dominance.

Still, the agreement fell short of delivering the structural changes Trump has long promised to rebalance the US-China trade relationship.

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2. US Mortgage Rates Fall for Fourth Week

US mortgage rates fell for a fourth straight week, edging closer to 6%, though persistent economic uncertainty is keeping many potential homebuyers on the sidelines.

The average 30-year fixed mortgage rate dropped to 6.17% from 6.19% last week — the lowest level since early October 2024, according to Freddie Mac data.

Rates declined following the Federal Reserve’s widely expected quarter-point rate cut on Wednesday. Chair Jerome Powell cautioned investors, however, not to expect additional cuts this year.

Typically, lower borrowing costs combined with a strong stock market would signal rising housing demand, and economists had forecast a modest uptick in pending home sales last month. Instead, sales were flat despite growing inventory, weighed down by concerns over tariffs, job security, and the ongoing government shutdown.

“Rates aren’t likely to move much lower absent surprisingly slower economic activity,” said Realtor.com Chief Economist Danielle Hale, noting that markets have already priced in the Fed’s latest move.

“Economic concerns could also mean rising rates through the end of the year,” said Bright MLS economist Lisa Sturtevant. “For financially ready buyers, right now could be a sweet spot for lower rates and more inventory.”

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3. Meta to Sell at Least $25 Billion in Bonds

Meta Platforms Inc. is planning to sell at least $25 billion of investment-grade bonds on Thursday, just a day after Chief Executive Officer Mark Zuckerberg said the company would ramp up its already-aggressive spending on artificial intelligence next year.

The offering is set to be one of the largest US corporate bond sales of 2025. It follows a private $27 billion bond sale by a joint venture funding Meta’s Louisiana data center, much of which was initially bought by Pacific Investment Management Co.

According to Morgan Stanley, major technology firms — known as hyperscalers — are expected to pour about $3 trillion into data centers through 2028, with roughly half of that financed by their own cash flows and the remainder through credit markets. “Most of this AI-related CapEx is still ahead of us,” said Andrew Sheets, Morgan Stanley’s global head of corporate credit research. “It’s only just starting to ramp up, so this theme will be with us for a while.”

Tech companies are rushing to capitalize on declining borrowing costs as the Federal Reserve cuts interest rates and investors seek to lock in still-high yields. Meta, meanwhile, is integrating artificial intelligence into its core products — Facebook and Instagram — and said Wednesday it expects as much as $72 billion in capital expenditures this year, with 2026 spending projected to grow even faster.

Meta shares fell as much as 14% on Thursday amid investor concerns about soaring expenses despite strong long-term AI ambitions.

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4. YouTube to Use AI to Upscale Low-Resolution Videos

Google’s YouTube plans to deploy artificial intelligence to enhance the visual clarity of low-resolution videos across its platform, improving playback quality on TVs, the web, and mobile devices.

The feature, known as “upscaling,” will first apply to videos uploaded below 1080p resolution, YouTube’s senior product director Kurt Wilms said in a blog post Wednesday. The company intends to extend support to 4K “super resolution” in the near future. A Google spokesperson confirmed the rollout will include both web and mobile versions of YouTube.

While some creators may object to YouTube modifying their content, Wilms stressed that original files will remain untouched and creators can opt out of the feature entirely. Enhanced videos will be clearly labeled so viewers can tell whether a video has been AI-upscaled.

Upscaling should notably improve viewing experiences on large-screen TVs — YouTube’s fastest-growing platform — but will also make videos sharper on large smartphones and foldable devices.

Many of YouTube’s most popular creators already post in 4K, but the site still hosts millions of older videos uploaded in standard definition (480p) or lower. The new AI feature aims to breathe new life into that legacy content.

YouTube is also raising the file-size limit for video thumbnails from 2 megabytes to 50 megabytes, allowing for higher-detail images on TVs.

Wilms added that YouTube is testing “larger video uploads with select creators” to enable even higher fidelity, part of a broader effort to compete with Netflix Inc. and other streaming giants.

Earlier this year, YouTube drew criticism after quietly using machine learning to enhance Shorts video quality. The company later clarified that those enhancements did not involve AI “upscaling.”

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5. Chipotle Cuts Outlook Again as Consumer Spending Weakens

Pending sales of existing US homes were unchanged in September, indicating that job market anxiety kept potential buyers on the sidelines despite easing mortgage rates.

An index of contract signings held steady at 74.8 after rising a revised 4.2% in August — the highest level since March — according to data released Wednesday by the National Association of Realtors. Economists surveyed by Bloomberg had expected a 1.2% increase.

Even with the flat reading, housing economists say the resale market is showing tentative signs of thawing after years of sluggish demand. Mortgage rates have stabilized below 6.5%, and home prices are cooling. The so-called “lock-in effect,” in which homeowners are reluctant to sell because they hold low-rate mortgages, is also easing and helping to boost inventory.

Data from S&P Cotality Case-Shiller on Tuesday showed that buyers are gaining leverage over sellers. A national gauge of home prices rose 1.5% in August from a year earlier, the smallest annual gain since mid-2023.

By region, contract signings for previously owned homes climbed 1.1% in the South — the highest since March — and also rose in the Northeast, while falling in the West and Midwest.

The broader housing market has seen renewed momentum recently, with new-home sales jumping in August to the highest level since 2022. While some economists attributed the sharp gain to normal monthly volatility, homebuilders have been using price cuts and incentives to spur demand.

Pending home sales typically serve as a leading indicator for existing-home closings, as contracts are usually signed one to two months before final sales.

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6. Bitcoin Slumps Toward Range Lows

Bitcoin dropped toward the lower end of its recent trading range as record rallies in other risk assets faltered amid a mixed outlook for global growth and interest rates.

The largest cryptocurrency slid as much as 3.2% to below $107,000 before paring losses Thursday. The move followed the Federal Reserve’s expected quarter-point rate cut to a range of 3.75%–4% on Wednesday — its second consecutive reduction — while Chair Jerome Powell warned investors not to assume more cuts were imminent.

Market sentiment also wavered after Meta Platforms Inc. announced plans to issue debt to finance its artificial intelligence expansion. Less liquid tokens suffered heavier losses: Ether dropped about 5.3%, XRP fell 6%, and Dogecoin retreated 8.6%.

Selling accelerated earlier after US President Donald Trump’s meeting with China’s Xi Jinping, but soon eased. Trump described the meeting as “amazing” and said the two nations reached a trade deal that would immediately halve fentanyl-related tariffs on Chinese goods.

“Powell’s comments created a bit of risk-off sentiment,” said Charlie Sherry, head of finance at BTC Markets. “Add in the Trump–Xi meeting stirring markets today, and, unsurprisingly, you get some volatility. Some technology stocks are rallying, but crypto hasn’t followed — showing relative weakness and hesitation in digital assets right now.”

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7. Core Scientific Shareholders Reject $9 Billion CoreWeave Merger

Alphabet Inc. reported quarterly revenue that beat analysts’ expectations, powered by strong growth in its cloud business as artificial intelligence startups increasingly rely on Google’s computing infrastructure and expertise.

Shares jumped as much as 7.5% in after-hours trading.

Third-quarter sales, excluding partner payouts, rose to $87.5 billion, the company said Wednesday — topping the $85.1 billion average estimate of analysts surveyed by Bloomberg. Net income came in at $2.87 per share, versus Wall Street’s forecast of $2.26.

Alphabet is investing record sums to accelerate progress in artificial intelligence, embedding its large language model, Gemini, into core products such as Search to enhance user assistance and responsiveness. The company raised its full-year capital expenditure forecast to a range of $91 billion to $93 billion, up from an earlier estimate of $85 billion.

Investors are watching closely to see whether Google’s heavy AI spending will translate into business momentum, particularly in its cloud division and search advertising operations. The company says such investments in infrastructure, research, and talent are essential to compete with major cloud rivals like Amazon.com Inc. and Microsoft Corp.

Alphabet’s shares gained 2.7% to close at $274.57 in regular trading Wednesday and have climbed 45% so far this year.

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