27.10.202513:36:09UTC+00US Stocks at Fresh Record Highs

U.S. stock markets soared to new record levels on Monday, with the S&P 500 increasing by 0.9%, the Dow Jones Industrial Average adding 260 points, and the Nasdaq Composite climbing 1.4%. This surge was fueled by renewed optimism surrounding a potential trade agreement between the United States and China. Treasury Secretary Scott Bessent expressed confidence in a "very successful framework" for discussions between Presidents Biden and Xi scheduled for Thursday. The proposed framework may involve delaying China's restrictions on rare earth exports, canceling the planned 100% tariffs on Chinese imports which are set to be implemented next month, and resuming Chinese purchases of soybeans. Communication services and technology stocks led the charge, with Nvidia, Broadcom, Alphabet, and Tesla each advancing more than 2%. Traders are preparing for a busy week of corporate earnings, as five of the tech giants known as the "Magnificent Seven" are set to announce their results. Additionally, the Federal Reserve is anticipated to implement another 25 basis point reduction to the federal funds rate this week.