Dow Leaps Ahead of Fed Meeting, Trump-Xi Summit

Stocks surged on Tuesday as Wall Street increased bets on a U.S.-China trade deal after President Donald Trump said he will be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit. Sentiment was also lifted by hope that the Federal Reserve will ease monetary policy later this year.

The Dow Jones Industrial Average surged 353.01 points, or 1.4%, to 26,465.54, as 3M and Boeing outperformed.

The S&P 500 gained 28.08 points, or 1%, at 2,917.75. The S&P 500 also traded within 1% of its all-time intraday high of 2,954.13, which was reached May 1.

The NASDAQ Composite climbed 108.86 points, or 1.4%, to 7,953.88

Boeing leaped 5.4%, while another trade bellwether, Caterpillar shares, rose 2.4%. Deere shares also gained more than 3%. Semiconductor stocks jumped led by 6% gains from Nvidia and Micron Technology.

Stocks also got a boost as investors bet the Federal Reserve will set the stage for more accommodative monetary policy at this week’s meeting.

The Fed’s decision is scheduled to be announced Wednesday at 2 p.m. ET.

Trump said in a tweet he “had a very good telephone conversation ” with Xi. He added: “We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.” The summit will start on June 28.

Prices for the benchmark 10-year U.S. Treasury gained, driving down yields to 2.06% from Monday’s 2.09%. Treasury prices and yields move in opposite directions.

Oil prices hiked $2.13 to $54.06 U.S. a barrel.

Gold prices ballooned $6.90 at $1,349.80 U.S. an ounce.