Wall Street Rallies As Trump-Xi Talks Fuel Trade Truce Hopes

Global markets surged on Monday as investors grew optimistic that U.S. President Donald Trump and Chinese President Xi Jinping would extend their trade truce during a high-stakes meeting in South Korea this week.

Asian Markets Hit Record Milestones

Asian stocks powered a broad rally, with several key indices hitting major milestones. Japan’s Nikkei 225 index surged 2.5%, climbing past the 50,000-point mark for the first time ever.

South Korea’s Kospi climbed 2.9% to a record high, while China’s CSI 300 and Hong Kong’s Hang Seng also saw significant gains of 1.2% and 1.1%, respectively.

Also Read: US Chip Stocks Tumble As Trade Tensions With China Heat Up

Wall Street Futures and Tech Stocks Rally

In the U.S., S&P 500 and Nasdaq futures advanced 0.9% and 1.3%, respectively, positioning Wall Street for record openings, the Financial Times reported on Monday.

U.S.-listed Chinese stocks, including Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), PDD Holdings Inc. (NASDAQ:PDD), JD.com, Inc. (NASDAQ:JD), NIO Inc. (NYSE:NIO), and XPeng Inc. (NYSE:XPEV), all rallied on Monday.

At the same time, U.S. big tech and semiconductor stocks like Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOGL), Microsoft Corp (NASDAQ:MSFT), Nvidia Corp (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO), Marvell Technology, Inc. (NASDAQ:MRVL), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Arm Holdings plc (NASDAQ:ARM) also traded upwards.

U.S.-China Summit Fuels Market Optimism

The market surge was primarily fueled by optimism regarding U.S.-China trade relations ahead of a major summit. This meeting will be the first face-to-face gathering of leaders since 2019, coming despite recent geopolitical tensions.

Tensions had risen due to Beijing’s retaliatory new export controls on rare earth materials, which had prompted a threat from President Trump of an additional 100% tariff on Chinese imports.

However, U.S. officials now expect China to delay those restrictions. Treasury Secretary Scott Bessent said both sides had agreed on a very positive framework after trade talks in Malaysia, raising hopes for an extended trade truce beyond its November 10 expiration date.

Key Economic Events: Earnings and Fed Decision

The improving outlook for U.S.-China relations coincides with a crucial earnings week on Wall Street, with major tech firms set to report. Investors are also closely awaiting a Federal Reserve interest rate decision later this week. Expectations for a rate cut were already strong after U.S. markets reached new highs on Friday when inflation data came in lower than anticipated.

Commodity and crypto markets reacted quickly to the trade news. Gold prices, often seen as a safe haven, slid 2% to $4,027 per troy ounce. Meanwhile, Bitcoin (CRYPTO: BTC/USD) rose 1.7% to $115,263, continuing a recent rally. Three-month copper futures increased 0.9%, reflecting improved prospects for global economic growth.

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