Global stock markets, led by the S&P 500, Dow, and Nasdaq, soared to new all-time highs on Monday, propelled by optimism surrounding crucial US-China trade talks, an anticipated Federal Reserve interest rate cut, and upcoming major corporate earnings reports.
Stocks across Wall Street and Asia climbed to fresh records on Monday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq composite each hitting all-time highs for a second consecutive day. This rally is driven by a week packed with potentially market-moving events. Investors are optimistic about a Thursday meeting between U.S. and Chinese leaders, hoping for a de-escalation of trade tensions. Anticipation is also high for the Federal Reserve's Wednesday announcement, with traders largely expecting a second consecutive quarter-point interest rate cut to boost the economy, despite lingering inflation concerns. Furthermore, major tech companies like Alphabet, Meta, Microsoft, Amazon, and Apple are set to release their earnings this week, needing to demonstrate strong growth to justify significant investments in artificial intelligence, amidst growing 'AI bubble' worries. Monday also saw substantial merger and acquisition activity, with Huntington Bancshares acquiring Cadence Bank for $7.4 billion and Novartis agreeing to buy Avidity Biosciences for $12 billion. Internationally, Japan's Nikkei 225 surpassed 50,000, fueled by Prime Minister Sanae Takaichi's market-friendly policies. Amidst this widespread optimism, the price of gold slumped after hitting a record last week, while the 10-year Treasury yield eased.
