Record-Breaking U.S. Stock Rally Fueled by Trade Deal Hopes

U.S. stock index futures soared to unprecedented heights on Monday, driven by renewed optimism for a trade agreement between China and the United States. Analysts are eyeing a bustling week with major tech companies reporting earnings, and a probable interest-rate cut from the Federal Reserve adding fuel to the fire.

Sunday marked a pivotal moment as negotiators from both economic giants outlined a tentative deal framework. The accord aims to halt the escalation of American tariffs and China's export controls on rare earths. This move spurred investor faith, with shares of Chinese companies like Alibaba and Baidu showing significant premarket gains.

Last week concluded on a high note for the S&P 500 and Nasdaq, achieving their largest weekly gains since August. This was largely attributed to lower-than-expected inflation figures, which solidified the anticipation of a rate reduction from the Federal Reserve. As Wall Street braces for Big Tech earnings, all eyes are on heavyweights like Microsoft, Apple, and Amazon to gauge the market's next steps.