Stock market today: S&P500 ends above 6,800 for first time on US-China trade hopes
The S&P 500, Dow, Nasdaq hit fresh record closing highs on Monday, underpinned by growing optimism that the U.S.-China are closing on a trade deal that would help avert an global economically damaging trade war between the world’s two latest economies.
At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average traded 337 points, or 0.7%, higher, the S&P 500 index gained 1.1% to close at record of 6,874.71, and the NASDAQ Composite jumped 1.9%. All three of the main stock indices hit record closing highs.
U.S.-China trade talks progress boosting bets on trade deal
The U.S. and China structured the outline for a trade deal on Sunday, marking major progress to resolve the current trade dispute and taking the risk of further escalation off the table ahead of a Nov. 1 deadline.
U.S. Treasury Secretary Scott Bessent said the talks removed the threat of Trump moving ahead with his threat to impose 100% tariffs on Chinese imports starting Nov. 1.
The framework of a deal paves the way for a potential trade deal to be agreed when President Donald Trump and Chinese President Xi Jinping meet later this week.
Fed meeting looms
Investor sentiment strengthened after data last week showed that U.S. consumer prices cooled more than expected in September, reinforcing bets that the Fed will cut rates at its two-day policy meeting concluding on Oct. 29
The softer inflation print cemented expectations of a 25-basis-point cut, with markets now watching closely for signals on whether the central bank could ease further in the coming months.
“We continue to look for a 25bp rate cut [on Wednesday], with a further 25bp move in December and 50bp of cuts in early 2026,” ING analysts said in a recent note.
Qualcomm launches AI chip to challenge Nvidia, AMD; Big tech earnings in focus
Qualcomm Incorporated (NASDAQ:QCOM) jumped more than 11%, boosting the broader chip sector after unveiling a new AI chip as the chipmaker seeks to rival leaders Nvidia and AMD.
On the earnings, investors will also focus on corporate earnings, with five of the so-called “Magnificent Seven” tech giants set to report this week.
Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOGL) are due to release results on Wednesday, followed by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) on Thursday.
Ahead of Amazon’s results, Reuters reported, citing three people familiar, that the company is considering cutting 30,000 corporate jobs starting Tuesday.
Investors will be watching for updates on AI investment, cloud demand, and consumer spending trends.
Elsewhere, Keurig Dr Pepper (NASDAQ:KDP) stock surged higher after the soft drinks giant lifted its forecast for annual sales and said it had raised about $7 billion to finance its purchase of Dutch coffee giant JDE Peet’s.