Trump-Xi Summit: 3 Stocks Poised for Gains

Appearing on CNBC's Morning Call Sheet, Craig Johnson, chief market technician at Piper Sandler, advised investors to temper expectations for the upcoming Trump-Xi summit in Beijing. He identified three stocks that stand to benefit the most from any progress in trade talks: NVIDIA (NVDA), Boeing (BA), and Deere (DE).

Details

Johnson noted that the tech sector, particularly AI-related stocks, has already rallied significantly, which could limit additional upside even with positive summit news. However, NVIDIA, as the leading AI chip supplier, would be a prime beneficiary if trade restrictions ease. Boeing, which has been hit hard by US-China trade tensions, could see a rebound in aircraft orders. Deere stands to gain from Chinese demand for agricultural equipment.

Context

Johnson's comments come amid heightened expectations for a breakthrough in trade relations between the world's two largest economies. However, he warned that markets may have already priced in some positive outcomes, limiting the potential for large moves.

What It Means for Investors

Investors should monitor summit developments closely but recognize that significant short-term gains may be limited. The identified stocks offer long-term opportunities, but near-term expectations should be tempered.