Trade Talks Tension: U.S. and China Negotiate Amid Market Fluctuations

U.S. stock index futures experienced fluctuations on Tuesday as investors eagerly anticipated the conclusion of critical trade discussions between the United States and China. The ongoing talks aim to alleviate a tariff dispute that has adversely affected global markets throughout the year.

Commerce Secretary Howard Lutnick expressed optimism regarding the progress of the talks, which entered their second day in London. After preliminary agreements last month raised hopes, new tensions emerged when the U.S. accused China of obstructing exports vital to industries like aerospace and semiconductors.

White House economic adviser Kevin Hassett suggested the U.S. might ease export controls on certain semiconductors if China accelerates rare earth mineral exports. This potential compromise marks a positive step towards resolving trade hostilities. Meanwhile, investors are eyeing Wednesday's U.S. consumer prices data for insights into the Federal Reserve's future interest rate decisions.

(With inputs from agencies.)