0313 GMT - Markets could be less moved by the highly anticipated Xi-Trump summit than by Fed policy or the AI boom, says Garrett Melson at Natixis Investment Managers. Traders have long grown immune to oscillations in trade rhetoric, the portfolio strategist says. Unexpected headlines could be disruptive, but Melson says even the latest U.S.-China escalations show that "the TACO playbook remains alive and well," an acronym for "Trump Always Chickens Out" formed on expectations of trade policy U-turns. Positive remarks from both sides after preliminary talks fueled expectations that the ceiling for tariffs is in place and that China will likely back down on rare-earth controls. A further thawing in tensions may provide a marginal lift to sentiment and equities. Ultimately, as long as the direction of travel remains skewed to de-escalation, trade and tariffs matter little to markets, he says. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

October 29, 2025 23:14 ET (03:14 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.