Wall Street Rallies on AI Optimism and U.S.-China Trade Truce
Wall Street futures rose as optimism around AI demand and U.S.-China trade eased tensions. The S&P 500 and Nasdaq continued their growth streaks, while Nvidia's chip restrictions by Trump are set to impact international trade. Attention shifts to private sector economic data amid Fed policy uncertainty.
Wall Street opened November on a positive note as futures rose, supported by optimism over AI demand and a temporary U.S.-China trade truce. Both the S&P 500 and Nasdaq indexes extended their growth streaks, marking significant gains driven by the 'Magnificent Seven' tech companies.
President Donald Trump announced that Nvidia's advanced chips would be reserved for U.S. companies, a move intended to limit access by China and other nations. This decision comes amidst a trade agreement between the U.S. and China, albeit with unresolved deep-seated issues between the superpowers.
Focus this week is on the private sector's economic data, crucial for understanding the economy's health following a prolonged government shutdown. Investors are keenly awaiting the ADP private payrolls data, while discussions over the Fed's rate cut continue amid a backdrop of Supreme Court hearings on Trump's tariffs.
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