US stock indices climbed to record highs on Monday on optimism over a potential US-China trade truce in a pivotal week packed with Federal Reserve’s monetary policy meeting and Big Tech earnings.
US President Donald Trump and his Chinese counterpart Xi Jinping are scheduled to meet on Thursday to determine the framework for a trade agreement. This deal is intended to pause the implementation of steeper American tariffs and Chinese rare earths export controls.
On Wednesday, the Federal Reserve will announce its decision on interest rates. Comments from Chair Jerome Powell will be meticulously scrutinised for any indications regarding a potential rate cut in December.
At 10:28 a.m. ET, the Dow Jones Industrial Average rose 238.57 points, or 0.51%, to 47,445.69, the S&P 500 gained 58.69 points, or 0.86%, to 6,850.38 and the Nasdaq Composite gained 324.40 points, or 1.40%, to 23,529.27.
At 09:30 a.m. ET, the Dow Jones Industrial Average rose 315.67 points, or 0.67%, to 47,530.09, the S&P 500 gained 63.83 points, or 0.92%, to 6,856.09 and the Nasdaq Composite gained 335.24 points, or 1.45%, to 23,544.00.
Gainers and Losers
Technology shares advanced 1.4%, with Intel and Super Micro Computer both surging by more than 4%.
Chinese companies listed on the US exchanges saw notable gains, with Alibaba Group Holding, JD.com, and PDD Holdings each RISING by over 2%, whilst Baidu jumped 5%.
Conversely, rare earth miners suffered losses, with MP Materials, USA Rare Earth, and the NYSE-listed Trilogy Metals shares falling by 5.6%, 11%, and 15% respectively.
Bullion Market
Gold prices dipped below $4,000 per ounce on Monday, as growing signs of a thaw in US-China trade tensions lessened the metal’s appeal as a traditional safe haven asset.
Spot gold recorded a drop of 2.6% to stand at $4,005.11 per ounce at 10:13 a.m. ET (1413 GMT), having briefly traded under the $4,000 mark earlier in the session. US gold futures for December delivery also fell, down 2.9% to $4,019.00.
Elsewhere in the metals markets, spot silver fell 3.8% to $46.75 per ounce, platinum eased 1.1% to $1,588.86, and palladium declined 1.3% to $1,409.47.
