Traders work on the trading floor of the New York Stock Exchange (NYSE) on October 20, 2025 in New York City.
Spencer Pratt | Getty Images
Stocks jumped to new highs on Monday after U.S. and Chinese officials eased tensions over the weekend, setting the stage for President Donald Trump and Chinese President Xi Jinping to reach a trade deal this week.
this Dow Jones Industrial Average Up 258 points, or 0.5%. this S&P 500 Index rose 0.9%, while Nasdaq Composite Index The stock rose 1.4%, driven by gains in chip stocks NVIDIA. All three major stock indexes hit record highs during the session.
“I think we have a very successful framework for leaders to discuss on Thursday,” Finance Minister Scott Bessant told the ASEAN summit in Kuala Lumpur.
The framework could include a delay in China's restrictions on rare earths, Trump's threat to impose 100% tariffs on China starting on November 1, and China's resumption of soybean purchases. The deal could include resolving TikTok's dispute with the United States and striking a deal for a U.S. version of the social video app.
“I have great respect for President Xi and we're going to make a deal,” Trump said on Air Force One on Monday.
Chipmakers, the industry with the most to lose from tensions with China, underpinned Monday's gains. Nvidia gained about 2%, while Broadcom It rose by about 1%. Tesla and apple They also increased by about 3% and 1% respectively, with the latter having a market capitalization of nearly US$4 trillion.
Qualcomm Shares surged to new highs after the company released a new artificial intelligence chip that competes with Nvidia, AMD. The stock last rose 19%.
“Details are still limited and nothing will be finalized before the Trump-Xi meeting, but a new truce now seems a near certainty, with China potentially delaying rare earth export controls entirely for a year, which is better than reaching a deal to grant licenses,” Wolf Research's Tobin Marcus said in a note. “If the Trump-Xi meeting goes well, an overall better-than-expected outcome should be positive for markets this week.”
Stocks are ending a bull run, with all three major indexes hitting record highs on Friday. The Dow Jones Industrial Average closed above 47,000 for the first time. The S&P 500 hit 6,800 for the first time on Friday. All three major benchmarks posted gains for a second straight week.
Investors expect the Federal Reserve to cut interest rates sharply on Wednesday, especially after the U.S. Bureau of Labor Statistics released slightly weaker-than-expected inflation data last week. Upcoming earnings reports from major tech companies are also on the horizon. Alphabet, Amazon, Apple, Meta Platforms and Microsoft are among several “Magnificent 7” stocks set to release third-quarter results this week.
While investors were encouraged by improving relations with China, the setback with Canada dampened their enthusiasm. On Saturday, Trump imposed a 10 per cent tariff on Canadian imports because he did not remove television ads by former President Ronald Reagan quickly enough to lift the tariffs.