U.S. Stocks Rise on China Trade Optimism and Big Earnings Week
U.S. stocks climbed on Monday, lifted by optimism over renewed trade talks between Washington and Beijing. The rally came as investors prepared for a busy week filled with major corporate earnings reports and key inflation data.
At 09:32 ET (13:32 GMT), the Dow Jones Industrial Average gained 210 points (0.5%), the S&P 500 rose 40 points (0.6%), and the NASDAQ Composite advanced 185 points (0.8%).
U.S.-China Trade Tensions Ease
Market sentiment improved after President Donald Trump signaled that his proposed triple-digit tariffs on China might not be sustainable. His comments fueled hopes that the trade rift between the world’s two largest economies could soon ease.
Trump confirmed he will meet Chinese President Xi Jinping later this month in South Korea, saying in a TV interview that the U.S. is “going to be fine with China.”
Meanwhile, Treasury Secretary Scott Bessent announced plans to meet Chinese Vice Premier He Lifeng this week to prevent further tariff escalation. Chinese media described the talks as “constructive,” noting that both sides agreed to resume discussions soon.
Earlier this month, heightened trade tensions had hit Wall Street hard, sending benchmarks lower from record highs after Trump threatened to impose 100% tariffs on Chinese goods.
Fresh data from Beijing showed that China’s economy grew slightly above expectations in Q3 2025, though it remained at its slowest pace in a year due to disinflation and trade pressures.
Major Earnings in Focus
Beyond trade news, investors are turning their attention to third-quarter earnings. Key reports this week include Netflix (NASDAQ:NFLX) on Tuesday and Tesla (NASDAQ:TSLA) on Wednesday.
Other major names — including GE Aerospace (NYSE:GE), Coca-Cola (NYSE:KO), Philip Morris (NYSE:PM), Rtx Corp (NYSE:RTX), General Motors (NYSE:GM), Lockheed Martin (NYSE:LMT), and Texas Instruments (NASDAQ:TXN) — are also set to report results.
The spotlight will be on whether corporations can sustain profit growth amid tariff disruptions and a cooling labor market. Markets are also awaiting delayed U.S. economic data caused by the ongoing government shutdown.
The Bureau of Labor Statistics is expected to release the September Consumer Price Index on Friday, providing fresh insight into underlying inflation trends.
Broader Market Developments
Last week, major Wall Street banks reported strong Q3 earnings, lending some stability to markets. The 20-day federal government shutdown is also expected to end this week, according to White House economic adviser Kevin Hassett.
Elsewhere, Apple’s iPhone 17 outperformed the previous model by 14% in its first ten days of sales across the U.S. and China, according to Counterpoint Research.
Amazon (NASDAQ:AMZN) remained in focus after a temporary AWS outage affected several major websites.
Meanwhile, Adobe (NASDAQ:ADBE) launched Adobe AI Foundry, a new platform enabling businesses to create custom generative AI models using their own data.
In the consumer sector, Molson Coors (NYSE:TAP) announced plans to cut around 400 jobs across its Americas division by the end of December as part of a restructuring initiative.
Oil Prices Fall on Weak Demand Outlook
Crude oil prices slipped on Monday, extending recent declines. Weak Chinese economic data and concerns over global demand weighed heavily on sentiment.
Brent futures fell 1.6% to $60.33 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 1.6% to $56.26. Both benchmarks recorded their third consecutive weekly decline, pressured by the International Energy Agency’s forecast of a potential supply glut in 2026.
