The White House on Thursday began readmitting journalists from three media outlets — MS NOW, CNN and Politico — after a federal judge temporarily lifted President Donald Trump’s ban on those outlets.

The move came after Secret Service officers initially barred some journalists from those outlets from entering the White House earlier Thursday despite the order by Judge Timothy Kelly.

Kelly ordered Trump and other defendants in a lawsuit by the outlets reply to their new court filing notifying him of non-compliance with his temporary restraining order against the president’s ban.

The White House’s director of operations responded to Kelly with a declaration that said the White House had restored press passes to the affected outlets. The outlets by that time had begun reporting that their journalists were being admitted to the White House.

Kelly issued his restraining order, which will last for at least 14 days, late Wednesday night. It directed the White House to “immediately” restore access to the three outlets.

The outlets had been blocked from entering the White House since Saturday, a day after Trump announced his ban.

The president had initially said he was blocking the outlets from the White House because of “cumulative stories” that contained lies about him and his administration.

The outlets in their civil complaint said that statement by Trump, and subsequent ones, bolstered their claim that he was violating their First Amendment rights to a free press by targeting them for what they reported about him.

In his order Wednesday in U.S. District Court in Washington, Kelly said the three outlets had shown they were likely to win their lawsuit challenging Trump’s ban, “at least on their Fifth Amendment due process claim.”

The judge, whom Trump appointed in 2017, said the ban appeared to clearly violate two federal appeals court rulings that require advance notice and an opportunity to be heard to journalists whose White House press passes are targeted for revocation.

Kelly said he was bound to follow the rulings in those cases, “full stop,” which were issued in the U.S. Court of Appeals for the District of Columbia Circuit.

Trump did not warn the outlets he wanted to bar them before imposing his ban. The Justice Department issued explanations for the ban to the outlets on Tuesday, a day after they sued to block the ban.

Kelly, in his ruling, also said he was “skeptical” of the Justice Department’s claims that Trump was actually motivated by a need to safeguard national security in revoking the outlets’ access.

“Nothing in the record that predates this suit suggests that the revocation of Plaintiffs’ hard passes was motivated by national security concerns,” Kelly wrote.

“Certainly, that is not what President Trump said when he announced that he was ‘banning’ Plaintiffs from the White House — instead, he focused on the alleged lack of truthfulness and negativity of Plaintiffs’ reporting.”

Kelly also said that “nothing” in the letters to the outlets citing their purported endangering of national security with their reports suggests an urgent need to ban them.

“Indeed, some of the reporting identified by Defendants in the letters to Plaintiffs stretches back months or years,” Kelly wrote.

“Simply put — the record lacks factual support for Defendants’ contention that the revocation of Plaintiffs’ hard passes will in fact protect national security or that national security will be endangered if the Court orders their passes reinstated while this litigation proceeds,” the judge wrote.

Kelly declined to grant a request by the Justice Department to delay the temporary restraining order against Trump’s ban from taking effect immediately.

And Kelly noted that “temporary restraining orders are generally unappealable.”

The White House didn’t immediately respond to CNBC’s request for comment on the ruling.

A lawyer for the outlets, Theodore Boutrous Jr., welcomed Kelly’s ruling order, calling it “a strong ruling vindicating freedom of the press, due process and the rule of law.”

“We greatly appreciate the court’s swift action,” Boutrous said in a statement.

The White House, when asked for comment about the order Thursday, replied with a link to the court filing in which its director of operations notified Kelly about the measures the White House had taken to restore the press credentials of the outlets.

On Thursday, Kelly, in an order, told the outlets to file any motion seeking a preliminary injunction, which would continue to prevent the White House from implementing Trump’s ban while their lawsuit continues, by Sept. 28.

Kelly, who told the defendants in the lawsuit to respond to such a motion by Oct. 2, said in his order, “The Court will set a hearing at a later date but intends to rule expeditiously on the motion for a preliminary injunction.”

Disclosure: CNBC and MS NOW are divisions of Versant Media.

Investors should consider rethinking their investment playbook following the Federal Reserve’s rate hike as expectations for a higher-for-longer rate environment intensify, according to Bank of America. Last week, the Federal Reserve increased interest rates by 25 basis points – its first interest rate hike in more than three years – bringing the overnight funds rate to a target range of 3.75%-4%. The hike was widely expected as Fed Chairman Kevin Warsh has been vocal about tackling stubborn inflation to achieve better price stability in the economy. Bank of America expects two more 25 basis point hikes this year. Long-term yields have risen to almost 20-year highs. The benchmark 10-year Treasury spiked more than 14 basis points to 5.116% on Wednesday. The increase was its largest one-day move in nearly 18 months, and its being driving by several factors: hawkish commentary from a top Federal Reserve official , high oil prices and robust economic activity. Higher yields tend to pose competition for stocks has investors may prefer allocating to relatively risk-free and higher yielding bonds rather than risk-on stocks. However, during Fed hiking cycles, Bank of America argued that quality stocks – those that have strong balance sheets and consistent cash flow – and value stocks – which are temporarily out of favor and are trading at a lower valuation – have been the best performing groups in the Russell 2000. BofA said quality stocks should “continue to lead given the likelihood of more Fed hikes,” while value stocks have a chance to accelerate as profits grow. The bank included a screen of Russell 2000 stocks that rank well on factors that have historically outperformed during hiking cycles including Madison Square Garden Entertainment, Peloton and Puerto Rico’s First Bancorp . It said these companies have proven they can generate strong revenue, earnings and cashflow despite the pressure of higher interest rates on their businesses. BofA said Madison Square Garden should perform well in a higher rate environment given the entertainment giant ranks highly on cash flow returns. Analysts have a buy rating on the stock. Madison Square Garden’s stock has climbed more than 45% so far this year. Likewise, First Bancorp should outperform in a rate hiking cycle given that banks tend to benefit from higher rates since they earn more on loans. In a similar light, the overall financial sector is a beneficiary of higher rates since they can charge more on mortgages, car loans and business debt. The Puerto Rico-based bank has gained 30% so far this year. Consumer discretionary name Peloton should also be poised to perform well as it’s top ranked on free cash flow and return on invested capital. The connected fitness company is in the midst of a turnaround effort and recently unveiled new treadmills, an AI-powered personal training assistant and new distribution channels. Peloton shares have fallen more than 20% year to date.

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President Donald Trump wants the U.S. to beat China in the artificial intelligence race. But as he meets Chinese President Xi Jinping, both countries are also weighing how to address the risks posed by rapidly advancing technology.

In recent months, AI systems have taken more consequential actions online: OpenAI said one of its research models gained unauthorized access to parts of the AI platform Hugging Face, while Anthropic found AI was being used to automate parts of cyberattacks. The incidents have raised fears that increasingly autonomous models could make attacks faster and harder to contain.

Ahead of Trump and Xi’s meeting on Thursday, U.S. Treasury Scott Bessent discussed the prospect of a “U.S.-China AI dialogue” with his Chinese counterpart, He Lifeng, over the weekend, including a channel for incidents “up to a national security level.”

“Leaders in both countries are spooked by the increasing cyber capabilities of AI models, and especially agents acting autonomously to escape containment and breach websites,” Aalok Mehta, director of the Wadhwani AI Center at the Center for Strategic and International Studies, told CNBC.

But as fears have intensified, tensions have not dissipated.

Washington continues to restrict China’s access to Nvidia

What’s been said so far?

While the U.S. took an early lead in developing large language models, or LLMs, thanks to companies like OpenAI and Anthropic, Chinese models have made big capability gains in recent months and are increasingly being adopted by companies globally, including in America.

Trump previously dismissed warnings that AI poses an existential threat to humanity, risks amplified by OpenAI CEO Sam Altman and Anthropic chief Dario Amodei as they called for an industry slowdown and regulatory oversight.

“If we don’t win AI, we’re going to be put in a very bad position,” Trump told reporters earlier this month.

But in a Truth Social post Monday, he said the government “will rein things in if we have to.”

Some lawmakers hopeful that the talks will result in some sort of agreement on AI, while being realistic that the summit may be more about the fact it’s happening than deliverables.

“I hope Trump meets with Xi Jinping and comes up with some common sense safeguards,” Rep. Ro Khanna, D-Calif., who represents part of Silicon Valley, said in an interview Wednesday on CNBC’s “Squawk Box.”

“How about we just agree that you should not be able to have self-improving AI?” Khanna said. “Why wouldn’t you want to sit down with Xi Jinping and say let’s have some reasonable agreement? And have it enforceable, trust but verify.”

AI safety and access to chips

The likeliest areas of agreement between the U.S. and China could be common definitions and frameworks for AI safety for powerful models and an emergency communication mechanism to discuss incidents, Mehta told CNBC.

A channel for relating national security-related incidents would be a “modest” but positive step, Chris McGuire, senior fellow for China and emerging technologies at the Council on Foreign Relations, told CNBC.

But an agreement to slow down AI’s breakneck development speed is “extremely unlikely,” he added.

China has historically used AI dialogues “to complain about U.S. export controls,” McGuire said, which the U.S. uses to prevent the most advanced AI chips from being sold to China.

“Its state media has largely rejected the concerns expressed by leading U.S. AI labs about the potential for catastrophic risk, which is consistent with China’s long-held skepticism of all U.S. arms control proposals,” he added.

Despite U.S. restrictions, several Chinese firms have reportedly been able to access the chips’ compute power remotely, via data centers in Southeast Asia.

While U.S. Trade Representative Jamieson Greer said controls on chips were not on the agenda during preliminary talks on the weekend, China could push to have them relaxed, said Melanie Hart, senior director of the think tank Atlantic Council’s Global China Hub.

“China’s asking the U.S. to embrace Chinese AI models and drop some of the U.S. controls on China’s access to semiconductor chips,” she told reporters on Tuesday.

Distillation could also come up in the talks. U.S. companies and officials have accused Chinese labs of using the practice to gain ground, characterizing it as theft; China rejects the allegations.

In July, Bessent threatened sanctions against companies doing it and said the Trump administration had found “watermarks of our U.S. large language models on many of the Chinese models,” calling it “unacceptable.”

Progress on AI cooperation relies on two things, said Mehta. “The first is that it can’t hurt the ability for the U.S. and China to compete on the merits of their technology.”

The second is a verification mechanism, he added. “Policymakers won’t be inclined to take their counterparts just on their word, so we’ll need to find ways to ensure information flowing between the two countries is accurate. That means both technical and governance verification tools.”