Markets Open Cautiously Amid Trump’s Military Move and Ongoing U.S.-China Trade Talks

At the opening bell Tuesday, U.S. stock indexes showed modest gains, as investors weighed the geopolitical implications of a fresh military deployment on American soil and the continuing trade negotiations between Washington and Beijing.

The Nasdaq Composite led the major averages higher, rising 32.72 points, or 0.17%, to 19,624.00. The S&P 500 followed with an 8.64-point gain, or 0.14%, opening at 6,014.52. Meanwhile, the Dow Jones Industrial Average edged lower by 12.30 points, or 0.03%, starting the session at 42,749.50.

The cautious optimism at the open comes amid significant developments both at home and abroad.

On the domestic front, President Donald Trump has ordered the deployment of approximately 700 Marines to Los Angeles in response to escalating immigration protests. The U.S. Northern Command stated the battalion will assist in securing federal property and personnel, though legal constraints limit their role absent a formal invocation of the Insurrection Act. California officials, including Governor Gavin Newsom and Attorney General Rob Bonta, have sharply criticized the move, with Bonta’s office filing a lawsuit that claims Trump exceeded his legal authority.

Investors are also closely following ongoing U.S.-China trade negotiations in London. Treasury Secretary Scott Bessent is leading the American delegation in the first meeting of a revived economic and trade consultation mechanism. High-stakes topics include loosening restrictions on key U.S. exports and gaining Chinese concessions on rare earth materials, which are vital to sectors ranging from consumer electronics to defense. Though specifics remain undisclosed, President Trump expressed confidence in the talks, saying they are “going well” and that he is “only getting good reports” from his team.

Market participants appear to be treading carefully in the face of these developments. While renewed engagement with China offers a potential economic boost, especially for industries reliant on export flows or rare-earth inputs, the domestic unrest and legal uncertainty surrounding the Marine deployment could introduce new volatility.

Elsewhere, corporate developments are also drawing attention. Paramount Global has announced it will lay off another 3.5% of its U.S. workforce, citing ongoing restructuring amid a delayed merger with Skydance Media. The company, which previously cut 15% of its staff over the past year, said in a memo that “several hundred jobs” would be impacted.

For now, however, markets appear to be holding steady. With more clarity expected from the trade talks and any judicial response to California’s lawsuit, traders are likely to remain on edge as the week progresses.

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