US stocks surged to new record highs on Monday as optimism grew over an imminent US-China trade deal and investors braced for a packed week of market catalysts.
The Dow Jones gained more than 300 points, or 0.7%, while the S&P 500 rose 1.2% to close above 6,800 for the first time. The Nasdaq outperformed, jumping 1.9% to a fresh record as traders piled back into tech heavyweights.
Sentiment brightened after both Washington and Beijing signalled that weekend talks had cleared the path for a trade breakthrough when President Trump meets China’s President Xi Jinping later this week in South Korea. The prospect of an agreement ending years of tariff friction sent risk appetite soaring, pushing equities to fresh record highs.
Markets are also looking ahead to Wednesday’s Federal Reserve meeting, where policymakers are widely expected to deliver another 25 basis point rate cut. The case for easing was strengthened by Friday’s cooler-than-expected CPI data, delayed by the ongoing US government shutdown.
Adding to the week’s intensity, a flood of Big Tech earnings is on deck, with Microsoft, Alphabet and Meta set to report on Wednesday, followed by Apple and Amazon on Thursday. Investors are hoping strong results will reinforce the bullish momentum that has carried Wall Street to record levels through October.
