Stocks edged higher on Monday after President Donald Trump said US-China trade negotiations were progressing positively, helping lift investor sentiment ahead of a pivotal Federal Reserve meeting this week.
The S&P 500 climbed 0.4% to reach another all-time high, while the Nasdaq Composite also advanced 0.6%, marking a fresh record.
The Dow Jones Industrial Average, on the other hand, fell 14 points, or 0.03%.
Trade talks and TikTok uncertainty
Top US and Chinese officials met for a second day of negotiations, focusing on tariff rates and the looming deadline for a divestment of the Chinese-owned social media platform TikTok.
In a Truth Social post, Trump described the discussions as positive and suggested that a deal had been reached concerning “a certain company that young people in our Country very much wanted to save,” widely interpreted as TikTok.
The US has threatened to proceed with a TikTok ban if China does not ease demands on tariffs and technology restrictions, Reuters reported Monday, citing a senior US official.
Stock movers
Tensions extended beyond trade and social media.
China’s market regulator, the State Administration for Market Regulation (SAMR), accused Nvidia of violating anti-monopoly law and pledged to continue its probe into the chipmaker.
Shares of Nvidia fell about 1.2% on Monday morning. SAMR’s investigation stems from Nvidia’s acquisition of Israeli technology company Mellanox in 2020 and certain agreements tied to the transaction.
In a separate move, Chinese authorities opened an anti-dumping investigation into US analog chips.
On Semiconductor slipped 0.3% following the announcement, while shares of Analog Devices fell 0.8% and and Texas Instruments each lost nearly 3%.
Tesla shares surged nearly 5% in trading after CEO Elon Musk disclosed a personal purchase of $1 billion worth of the company’s stock.
The buy marks Musk’s largest open-market purchase to date and his first significant buy since 2020.
Investors interpreted the move as a strong vote of confidence from Musk at a time when Tesla faces mounting competition in the electric vehicle market and seeks to reposition itself as a robotics and technology-focused company.
The rally added momentum to broader US equity gains in the session.
Elsewhere in the market, Gemini Space Station, the crypto exchange launched by Cameron and Tyler Winklevoss, extended its gains, rising 5% after a strong Nasdaq debut on Friday where it rallied 14%.
Fed meeting in focus as rate cut expected
Market participants are now closely watching the Federal Reserve’s two-day policy meeting, which concludes on Wednesday.
Recent data showing a cooling labor market and subdued inflation has strengthened expectations that the central bank will cut interest rates.
According to the CME FedWatch Tool, investors were pricing in a 96% probability that the Fed will lower rates by a quarter percentage point.
A steeper half-point reduction was seen as less likely, with odds standing at 3.6%.
Overall, Monday’s gains positioned US equities at record levels once again, underpinned by optimism surrounding trade discussions and expectations of monetary easing, though risks from geopolitical tensions and regulatory pressures remain firmly in view.
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