Stocks hit record highs on US-China trade deal hopes

Major stock indexes hit new records after the US and China touted constructive trade talks ahead of a leaders’ summit later this week. Treasury Secretary Scott Bessent said there was a “very successful framework” for President Trump and Xi Jinping to discuss Thursday, while a senior Chinese official said the two sides had reached a preliminary consensus on key issues.

The Dow industrials, S&P 500 and the Nasdaq composite hit new all-time highs, with big technology stocks leading gains. Benchmarks in Japan, South Korea and Taiwan also struck new records, while the Shanghai Composite Index closed at its highest in over 10 years.

Asian markets got an extra boost after the White House said it reached trade agreements or frameworks with Malaysia, Cambodia, Thailand and Vietnam. In contrast, Trump said Saturday the US will impose an extra 10% tariff on Canada.

Investors also welcomed a decisive victory by President Javier Milei’s party in Argentina’s midterm elections. US-listed shares in Argentine companies jumped and the government’s dollar-denominated bonds rallied, pushing down yields. The Argentine peso surged against the dollar.

It’s a big week for the stock market. More than one third of the companies in the S&P 500 are set to report quarterly earnings in the coming days, including big names like Apple, Meta and Alphabet. On Wednesday afternoon, the Federal Reserve will announce its latest move on interest rates. Investors are widely expecting another cut.

President Trump has said he will press China to resume US soybean purchases. Negotiations also cover rare-earth export controls, tariffs and fentanyl. Mr Trump is eager to make more deals that he can tout as victories to his domestic audience.

Things seem to be looking up for the President and the stock market, but there is still a lot of work to be done.