Traders work on the floor of the New York Stock Exchange (NYSE) on Oct. 20, 2025 in New York City.<\/p>\n
Spencer Platt | Getty Images<\/p>\n
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.<\/p>\n
The Dow Jones Industrial Average<\/a> rallied 208 points, or 0.5%. The S&P 500<\/a> climbed 0.9%, while the Nasdaq Composite<\/a> was up 1.5%, bolstered by a rise in chip stocks like Nvidia<\/a>. All three major averages had notched fresh all-time intraday highs<\/a> in the session.<\/p>\n “I think we have a very successful framework for the leaders to discuss on Thursday,” said Treasury Secretary Scott Bessent from the ASEAN Summit in Kuala Lumpur.<\/p>\n The framework potentially includes<\/a> 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.<\/p>\n “I have a lot of respect for President Xi, and we are going to come away with the deal,” Trump said<\/a> on Monday from Air Force One.<\/p>\n 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<\/a> gained around 1%. Tesla<\/a> and Apple<\/a> also added around 4% and 1%, respectively, with the latter nearing $4 trillion in market cap.<\/p>\n Qualcomm<\/a> reached a new all-time<\/a> high after the company announced new artificial intelligence chips<\/a>, putting it in competition with Nvidia and AMD<\/a>. The stock was last up 13%.<\/p>\n “Details are still limited, and nothing will be finalized until the Trump-Xi meeting, but a renewed truce now seems near-certain, with China likely fully delaying their rare earth export controls for a year\u2014better than the alternative of an agreement to grant licenses,” said Tobin Marcus of Wolf Research in a note. “This overall better-than-expected outcome should be bullish for markets this week, assuming the Trump-Xi meeting goes well.”<\/p>\n Investors also expect the Federal Reserve to slash rates on Wednesday, particularly after the Bureau of Labor Statistics released slightly cooler-than-expected inflation data<\/a> last week. Big Tech companies’ upcoming earnings reports are on tap as well, as several “Magnificent Seven” stocks, including Alphabet<\/a>,\u00a0Amazon<\/a>,\u00a0Apple<\/a>,\u00a0Meta Platforms<\/a> and\u00a0Microsoft<\/a>, will release their third-quarter results this week.<\/p>\n Stocks are coming off a bullish week, with all three major indices hitting record highs<\/a> last Friday. The\u00a0Dow Jones Industrial Average<\/a>\u00a0posted its first-ever close above the 47,000 mark. The\u00a0S&P 500<\/a>\u00a0touched 6,800 for the first time ever Friday. All three major benchmarks posted their second week in a row of gains.<\/p>\n