US stocks climbed to fresh record highs on Monday, with the S&P 500 rising 0.9%, the Dow Jones gaining 260 points, and the Nasdaq advancing 1.4%, amid renewed optimism over a US–China trade deal. Treasury Secretary Scott Bessent said he believes there is a “very successful framework” for Presidents Biden and Xi to discuss on Thursday. The proposed framework could include a delay in China’s rare earth export restrictions, the cancellation of planned 100% tariffs on Chinese goods set to take effect next month, and a resumption of Chinese soybean purchases. Communication services and tech shares were the top performers. Nvidia, Broadcom, Alphabet and Tesla were up more than 2%. Meanwhile, traders are bracing for a busy week of corporate earnings, with five of the “Magnificent Seven” tech giants set to report results. The Federal Reserve is also expected to deliver another 25 basis point cut to the federal funds rate later this week.
