Wall Street Surges Amid U.S.-China Trade Optimism and Earnings Week

Wall Street indices achieved record highs for a second consecutive day on Monday, propelled by investor optimism surrounding a potential trade deal between the U.S. and China. High-profile technology earnings anticipated this week and expectations for a U.S. interest rate cut contributed to market enthusiasm.

President Donald Trump and China's Xi Jinping are scheduled to meet on Thursday, aiming to establish a framework that might alleviate U.S. tariffs and China's rare-earth export restrictions. This has reduced market anxiety, as evidenced by a drop in the VIX, a fear gauge on Wall Street.

The upcoming earnings reports from giants like Microsoft, Apple, Alphabet, Amazon, and Meta will test the sustainability of this market rally. A focus remains on AI-driven growth and capital expenditures, with tech stocks like Qualcomm and Nvidia gaining significant traction due to advancements in AI technology.