Stocks jumped to new records on Monday after U.S. and China officials cooled tensions over the weekend, laying the groundwork for President Donald Trump and China President Xi Jinping to clinch a trade deal this week.
The Dow Jones Industrials came off its hikes of the morning, but retained 256.03 points in gains during noon hour to 47,463.75.
The S&P 500 index jumped 67.67 points, or 1%, to 6,859.55.
The NASDAQ popped 376.47 points to 23,581.33, bolstered by a rise in chip stocks like Nvidia.
Chipmakers, the sector with the most to lose from tensions with China, supported the rally Monday. Nvidia rose more than 2%, while others such as Broadcom gained around 1%. Tesla and Apple also added around 5% and 1%, respectively, with the latter nearing $4 trillion in market cap.
Qualcomm reached a new all-time high after the company announced new artificial intelligence chips, putting it in competition with Nvidia and AMD. The stock was last up 12%.
The framework potentially includes a delay of China’s rare earths restrictions that caused the latest trade flare-up, a spiking of Trump’s threatened 100% tariffs on China that were to start Nov. 1 and a resumption of Chinese purchases of soybeans.
The agreement may include a resolution of the TikTok dispute with the U.S. getting a deal for the U.S. version of the social video app.
Chipmakers, the sector with the most to lose from tensions with China, led the rally Monday. Nvidia rose 2%, while others such as Broadcom gained more than 1%.
Tesla took on 2%, and Apple also added around 1%, with the latter nearing $4 trillion in market cap.
While investors were encouraged by improving China-U.S. relations, a setback with Canada kept their enthusiasm in check. Trump on Saturday put an additional 10% tariff on Canada imports for not pulling a TV ad featuring former President Ronald Reagan knocking tariffs fast enough.
Prices for the 10-year Treasury slid a mite, raising yields to 4.01% from Friday’s 4%. Treasury prices and yields move in opposite directions.
Oil prices increased 16 cents to $61.66 U.S. a barrel.
Gold prices deleted $134.00 to $4,003.70. U.S. an ounce.
