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Baidu (NASDAQ:BIDU) jumped 9% in overnight trading, on top of a 7.8% gain yesterday, after the Chinese tech giant sealed a new partnership with state-owned China Merchants Group in its accelerating artificial intelligence (AI) drive.

• "Both sides plan to focus on applications of large language models, AI agents and 'digital employees'": Baidu, the leader in China's search engine market, spoke of plans for "scalable and sustainable progress in industrial intelligence."
• Advances in factuality and agentic capabilities: Baidu had earlier announced Ernie X1.1, its latest AI reasoning model, claiming its performance beats DeepSeek and matches OpenAI's GPT-5 and Alphabet's (NASDAQ:GOOG)(NASDAQ:GOOGL) Gemini 2.5 Pro.

Investors' eyes are on the Federal Reserve meeting that concludes today, expecting it to produce the first interest-rate reduction of the year. The money is on a 25-basis-point cut, though most expect new Fed appointee Stephen Miran to back something bigger. The CME FedWatch tool indicates a chance of a 50-point cut at just 4%.

• "The goals of the Fed's dual mandate are in 'tension' and are likely to become more so going forward": John Velis at BNY (NYSE:BK) points to the conflicting goals facing the Fed after Chair Jerome Powell hinted at Jackson Hole that tackling unemployment could be growing in priority.
• "The key question…is whether the committee will signal that this is likely the first in a series of consecutive cuts": David Mericle at Goldman Sachs (NYSE:GS) expects the Fed's dot plot -- its quarterly chart showing each member's prediction -- will signal two cuts in 2025 rather than three.

The U.S. and U.K. have agreed on a technology partnership to boost cooperation in AI, quantum computing, and nuclear energy, as President Donald Trump arrived on his second state visit. Microsoft (NASDAQ:MSFT) -- pledging $30 billion -- joins Nvidia (NASDAQ:NVDA), Alphabet, OpenAI, and Rule Breakers recommendation Salesforce (NYSE:CRM) in the new $42 billion "Tech Prosperity Deal."

• "Truly make the UK an AI maker, not an AI taker": Nvidia's David Hogan enthused as the company, in partnership with Britain's Nscale, plans to use up to 60,000 Grace Blackwell Ultra chips to help build the country's biggest AI supercomputer.
• "Next-generation biopharma factories and laboratories in the United States": As part of growing trade deals, Britain's GSK (NYSE:GSK) will invest at least $30 billion in research and development (R&D) in the U.S., including plans to advance AI-based manufacturing.

Further details are emerging regarding the sale of TikTok's U.S. operations to a consortium led by Oracle (NYSE:ORCL), ahead of a discussion between President Trump and Chinese President Xi Jinping set for this week.

• ByteDance stake to fall below 20%: According to Bloomberg, venture capital firms Andreessen Horowitz and Silver Lake will join Oracle as part owners, with a new U.S.-based app under development.
• "Mutual respect, peaceful coexistence and win-win cooperation": China's People's Daily praised the plans, adding that China will review TikTok's technology and intellectual property.

Online ticket reseller StubHub has set the pricing of its initial public offering (IPO) at $23.50 per share, with trading expected to commence today under the ticker "STUB" -- raising $800 million and valuing the company at $8.6 billion.

• Success at third try: StubHub had seen two previous attempts to go public shelved, the most recent derailed by President Trump's "Liberation Day" tariffs shock.
• IPO market surging: Recent public offerings, including Klarna (NYSE:KLAR) last week and Bullish (NYSE:BLSH) last month, got off to winning starts.

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