US stocks surged to new all-time highs on Monday, fueled by optimism surrounding an impending trade deal between the United States and China, coinciding with President Trump’s much-anticipated meeting with Chinese President Xi Jinping later this week.
The Dow Jones Industrial Average saw a notable increase of approximately 0.7%, equating to over 300 points, while the S&P 500 made a significant leap of over 1.2%, closing above 6,800 for the first time in history. Leading the charge, the Nasdaq Composite rose by 1.9%, achieving its own record closing value.
The positive sentiment in Wall Street comes as traders gear up for a significant week that includes the Federal Reserve’s interest rate decision and much-anticipated earnings reports from major tech companies. The high-stakes meeting between President Trump and President Xi set for Thursday adds to the market’s buoyant mood, particularly after indications from US and Chinese officials that recent negotiations have laid the groundwork for a potential breakthrough in their ongoing trade tensions.
In remarks to reporters, Treasury Secretary Scott Bessent expressed confidence in the upcoming discussions, suggesting a productive framework for the leaders to address key issues. Meanwhile, Beijing has acknowledged a “preliminary consensus,” indicating progress in resolving the trade war that has been fraught with escalating tensions in recent months.
Trump, while traveling to Japan, expressed optimism about the talks, emphasizing his respect for President Xi and his belief that a deal will be reached.
In addition to trade talks, markets are bracing for the Federal Reserve’s anticipated decision to cut interest rates during a meeting concluding on Wednesday. This expectation follows the release of cooler-than-expected inflation data, which strengthened the case for potential monetary easing.
The week also marks the arrival of quarterly earnings reports from notable tech giants, often referred to as the “Magnificent Seven.” Microsoft, Alphabet, and Meta are set to release their third-quarter results on Wednesday, followed by Apple and Amazon the next day.
Additionally, Qualcomm made headlines as its shares surged by as much as 20% following the announcement of its strategy to enhance its data center initiatives through new chips, positioning the company to directly compete with established players like Nvidia and AMD.
This week’s events hold tremendous potential for the market, with both trade negotiations and corporate earnings likely to play critical roles in shaping investor sentiment. The atmosphere in the market remains optimistic as key stakeholders look ahead with hope for a constructive dialogue and positive outcomes in the tech sector.