Global Stocks Hit Record as Trade Optimism Lifts Markets
Global stocks surged on Monday, reaching a new intraday record. The U.S. dollar eased as investors grew optimistic about a possible trade deal between the United States and China. Markets also awaited several key central bank policy meetings and earnings reports from major technology companies.
Over the weekend, senior economic officials from both nations reached a preliminary framework for a trade deal. U.S. President Donald Trump and Chinese President Xi Jinping are expected to review the agreement during a meeting in South Korea later this week.
Trump said he believes a deal is likely and announced multiple trade and critical minerals agreements in Malaysia with four Southeast Asian countries during his five-day Asia trip. A finalized deal would ease tariff pressures and lift Chinese restrictions on rare earth exports, reducing investor fears of renewed trade tensions between the world’s two largest economies.
Wall Street Hits Fresh Highs
U.S. stocks opened higher on Monday, with all three major indexes reaching new intraday records. The rally was led by technology stocks, including a sharp 18% surge in Qualcomm shares after unveiling two new AI chips for data centers expected to launch next year.
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, said that while no major decisions have been made yet, markets are hopeful for de-escalation in U.S.-China relations. “There’s still uncertainty, but optimism remains that tensions will ease,” he noted.
Central Banks and Earnings in Focus
Investors are closely watching this week’s central bank meetings across the United States, Japan, Canada, and Europe. The Federal Reserve is widely expected to cut interest rates by 25 basis points, following softer-than-expected inflation data in September. According to CME’s FedWatch Tool, the probability of a rate cut stands at 96.7%.
Meanwhile, earnings from “Magnificent Seven” companies — Microsoft, Alphabet, Apple, Amazon, and Meta Platforms — are due this week. Traders will assess whether strong results can justify high valuations in the tech sector.
Market Recap
- Dow Jones Industrial Average: +247.49 points (+0.52%) to 47,454.61
- S&P 500: +60.89 points (+0.90%) to 6,852.58
- Nasdaq Composite: +344.72 points (+1.48%) to 23,549.00
- MSCI Global Index: +8.90 points (+0.89%) to 1,010.27
- STOXX 600 (Europe): +0.23%
In Argentina, the Merval Index soared 17.8% after President Javier Milei’s party won a decisive midterm election victory, boosting confidence in ongoing economic reforms and international financial support.
Dollar Eases as Risk Appetite Returns
The U.S. dollar weakened against the euro, yuan, and Australian dollar amid growing optimism for a trade deal. The dollar index slipped 0.03% to 98.89, while the euro rose to $1.1636.
The Chinese yuan strengthened 0.23% to 7.111 per dollar, aided by the People’s Bank of China setting the official midpoint at 7.0881, its strongest level since October 2024. Against the Japanese yen, the dollar edged up 0.15% to ¥153.06, and the British pound gained 0.17% to $1.333.
Treasury Yields Edge Higher
In the bond market, the yield on the U.S. 10-year Treasury note rose 2.3 basis points to 4.02%, up from 3.997% on Friday.
As global investors anticipate both trade progress and central bank decisions, markets remain upbeat but cautious, balancing optimism with the potential for policy surprises.
