Morning Call Sheet: AI optimism and China talks lift markets

• Positive developments from the Trump-Xi summit are seen as beneficial for trade and specific US companies like Boeing, Qualcomm, and Nvidia.
• AI infrastructure growth is driving a surge in Cisco shares, with forecasts of 4x AI revenues this year, justifying its recent rally.
• The market is pricing in no further Fed rate hikes this year, contributing to overall economic optimism, supported by strong earnings surprises in the S&P 500.

Analysts discuss the positive implications of the Trump-Xi summit on trade and specific US companies like Boeing. Optimism around AI infrastructure growth is lifting tech stocks like Cisco, with strong revenue forecasts. The market also anticipates no further Fed rate hikes this year, supporting a positive economic outlook.