Hope Springs Eternal. But boy, is it easy to crush.

Despite opening in the red, equities staged a brief rally Thursday afternoon after Reuters reported that U.S. and Iranian negotiators were exploring a phased path out of war.

Those gains didn’t last long, though. The S&P 500 ended the day nearly flat, down only 0.02%. The Nasdaq Composite was also flat, ending 0.01% in the green. The Dow Jones Industrial Average fell 0.3%, or 161 points.

Equities weren’t able to shake off the day’s bond drama. Yields for the 10-year Treasury were lingering at their highest level since 2007, while yields for the 7-year note reached their highest level since 2009. Several factors were driving yields higher, including rising oil prices, the anticipation of more hawkish Fed policy, and weak demand at yesterday’s Treasury auction, notes Angelo Kourkafas, senior global strategist, investment strategy, at Edward Jones. He writes:

Still, it’s worth noting that stocks held their own, all things considered, with all three indexes still hovering around record highs.

While U.S. delegates hashed it out with Iran in New York, President Donald Trump was schmoozing Chinese leader Xi Jinping in Washington, D.C. In introductory speeches ahead of a closed-door meeting, both leaders emphasized cooperation and stronger communication.

“There is no need for China and the United States to shy away from competition; however, such competition should be benign and bounded—a race where we strive to excel alongside one another, rather than a zero-sum gladiatorial contest,” Xi said.

Expectations for the summit were low, but analysts see any sign that the two are seeking to improve relations as positive, writes my colleague Reshma Kapadia.

Barron’s newsletter portfolio is growing. Barron’s Global Signals is a premium weekly newsletter devoted to helping investors navigate volatility with confidence. Each week we connect how global risk, policy shifts and international developments impact your portfolio. You can subscribe to Barron’s Global Signals here.

The Hot Stock: Everpure, Inc +11.2%
The Biggest Loser: Gen Digital Inc. -12.1%

Best Sector: Communication Services +1.9%
Worst Sector: Utilities -1%

Before artificial intelligence was an existential threat to humanity, it was poised to wipe out the workforce. Citrini Research put out a report earlier this year estimating that AI implementation could create a double-digit unemployment rate as AI agents replace less efficient human workers, particularly in white-collar fields.

Understandably, that spooked a lot of people. But my colleague, Megan Leonhardt, reports that technology isn’t likely to wipe out all white-collar jobs, and that “these dark prognostications fail to recognize that technological revolutions don’t occur in vacuums.” She writes:

At the Children’s National Hospital in Washington, D.C., for instance, researchers are using AI to read MRI scans. While this might spark fears that AI would eradicate radiologists, the opposite is true. Since the introduction of ChatGPT in 2022, employment at U.S. diagnostic imaging centers is up about 12%, Megan reports. And the meal-delivery service HelloFresh has maintained its distribution-center head count at around 7,000, despite the company using AI to pack meal boxes.

“AI isn’t here to take over the world,” Dan Seidel, HelloFresh’s global chief operating officer, told Megan. “It is here to optimize what we do.”

Read her full article here.

The Census Bureau releases the durable goods report for August tomorrow. The consensus call is for a 0.3% decline in new orders for manufactured durable goods, following a 1.1% increase in July.

• Oracle Seeks ‘Force Majeure’ on Data Center. Why It’s Sinking the Stock.

• The Bond Market Could Be on the Verge of Sending a Troubling Economic Signal

• China Is Buying Oil But Don’t Panic Just Yet

• I Put Meta’s Muse AI Agent to Work. It Saved Me $25 a Month—and Found Me a Doctor.

• Ford Stock Falls as Hyundai Is Set to Outsell Them for the First Time Ever

Barron’s Live returns on Monday. Barron’s Live features timely and actionable insights for investors. We give you behind-the-scenes conversations with the newsroom, connecting you with our editors and reporters covering the markets, the economy, and more.

Sign up here