
Stocks rose Monday as Trump reported positive U.S.-China trade talks, with markets preparing for the Fed meeting. The S&P 500 gained 0.5% to 6,615, closing above 6,600 for the first time. The Nasdaq 100 rose 0.77% to a record 24,276, while the Dow Jones Industrial Average rose 0.1% to 45,883.
On Monday, Treasury Secretary Bessent announced that the U.S. and China have reached a framework deal for TikTok. Presidents Trump and Xi will discuss terms Friday. Bessent suggested the framework could shift the platform to U.S. ownership.
Markets responded positively to Trump’s optimistic China trade talk comments. Tech stocks boosted performance, with Alphabet jumping over 4% and Tesla rising more than 3%.
Japan’s Nikkei 225 hit a record 45,000 mark Monday, leading Asia-Pacific gains after President Donald Trump reported progress in U.S.-China trade talks. Japan’s Topix rose 0.4% to a record 3,172. Australia’s S&P 200 gained more than 0.2%. Hong Kong’s Hang Seng dipped 0.1%, while mainland China’s CSI 300 fell around 0.3%.
Investors await Wednesday’s Fed rate decision, with a 100% probability of at least a quarter-point cut according to the CME’s FedWatch. Markets will closely monitor Powell’s press conference for policy guidance.
On a related note, a federal appeals court ruled Monday that President Donald Trump cannot fire Federal Reserve Governor Lisa Cook before the Fed’s policy meeting on interest rates.
Tesla jumped 3% after Musk announced buying $1 billion in stock, his largest open market purchase ever and first major buy since 2020. Traders viewed this as Musk’s vote of confidence as Tesla shifts toward robotics amid EV competition.
Meanwhile, China’s regulator claimed Nvidia violated antitrust law and would continue investigating. Nvidia shares closed slightly lower.
Weak labor data and mild inflation boosted hopes for a Fed rate cut on Wednesday. Markets price in 95.8% probability of a quarter-point cut and 4.2% chance of a half-point cut, per CME FedWatch.
Lower rates may further support stocks, already buoyed by AI enthusiasm despite economic risks. Investors are also watching whether Stephen Miran will be sworn in as Fed governor before the FOMC meeting.
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