Wall Street hits new highs on U.S.-China trade optimism

Wall Street’s major indexes reached record highs on Monday, driven by optimism over a potential U.S.-China trade deal that encouraged risk-taking ahead of a week packed with Big Tech earnings reports and an anticipated Federal Reserve interest rate cut.
U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet on Thursday to outline the framework for an agreement aimed at halting steeper U.S. tariffs and China’s export restrictions on rare earths.
Reuters:
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At 10:28 a.m. ET, the Dow Jones Industrial Average rose 238.57 points, or 0.51%, to 47,445.69, the S&P 500 gained 58.69 points, or 0.86%, to 6,850.38 and the Nasdaq Composite gained 324.40 points, or 1.40%, to 23,529.27.
U.S.-listed shares of Chinese companies gained. Alibaba Group Holding, JD.com and PDD Holdings rose over 2% each. Baidu added 5%.
Rare earth miners fell with MP Materials, USA Rare Earth, and NYSE-listed shares of Trilogy Metals down 5.6%, 11% and 15%, respectively.
Tech stocks added 1.4% with Intel and Super Micro Computer both rising more than 4%.
As the busiest week of this earnings season kicks off, more than 170 companies are expected to report and all eyes will be on Big Tech.
Earnings from “Magnificent Seven” heavyweights Microsoft, Apple, Alphabet, Amazon, and Meta will act as a litmus test for Wall Street’s lofty valuations, the staying power of the rally and the long-term viability of outsized bets on artificial intelligence.

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MacDailyNews Take: Apple, which reports Q425 earning after the bell on Thursday, is currently up up over 1% and this morning hit a new all-time intraday high of $267.05.

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