U.S.-China Trade Optimism Propels Wall Street to Record Highs

Wall Street's primary indexes achieved new record highs on Monday, fueled by optimism over a potential trade agreement between the United States and China. This positive sentiment coincided with anticipation for significant technology earnings and an interest rate cut that investors widely expect.

The prospect of U.S. President Donald Trump meeting Chinese President Xi Jinping to discuss easing tariffs and curbs on rare-earth exports was a key factor alleviating market fears. Additionally, U.S. Treasury Secretary Scott Bessent's comments about China's intent to purchase U.S. soybeans further boosted hopes for reduced tensions.

Technology stocks played a crucial role, with earnings from the 'Magnificent Seven' companies set to challenge the market's rally. The tech sector, along with communication services and consumer discretionary, led the market gains, while the materials and consumer staples sectors lagged.