UPDATE: Wall Street stocks are on the rise, with the S&P 500 climbing 1 percent and the Dow Jones Industrial Average gaining 248 points as of 1:01 p.m. Eastern time. This surge comes just ahead of crucial US-China trade talks set for Thursday, fueling optimism among investors.
The Nasdaq Composite surged 1.7 percent, adding to its recent record highs. Meanwhile, the Australian sharemarket is facing a decline, with futures indicating a drop of 42 points, or 0.5 percent, at the open. The ASX previously gained 0.4 percent earlier today.
Investors are keenly awaiting discussions between US President Donald Trump and Chinese leader Xi Jinping, which aim to alleviate escalating tensions between the world’s two largest economies. US Treasury Secretary Scott Bessent stated there’s “a framework” for discussions, and Trump expressed optimism, stating, “We feel good” about the negotiations.
The S&P 500 has skyrocketed 37.6 percent since hitting a low in April, driven by hopes for easing trade tensions and expectations for continued growth in corporate profits. This week is pivotal, as the Federal Reserve is expected to announce a quarter-point rate cut on Wednesday to support the slowing job market.
However, the Fed has cautioned that it may need to adjust its course if inflation rises beyond its current levels. The latest inflation report exceeded economists’ expectations, raising concerns that a prolonged government shutdown could hinder future rate cuts.
Corporate earnings reports from major players like Alphabet, Meta Platforms, and Microsoft are also on the horizon, expected to reveal significant growth amidst rising investments in artificial intelligence technology. Keurig Dr Pepper rose 6.9 percent today after meeting profit expectations, thanks to increased prices for K-Cup products.
Additional stock movements include Cadence Bank, which increased 2.7 percent following a $7.4 billion acquisition by Huntington Bancshares, despite the latter’s 4 percent decline. Meanwhile, Avidity Biosciences surged 42.4 percent after announcing a $12 billion buyout by Novartis.
Asian markets also reflected this optimism, with Japan’s Nikkei 225 jumping 2.5 percent, marking its first rise above 50,000 amid positive public support for new Prime Minister Sanae Takaichi. The Kospi in South Korea rallied 2.6 percent.
In the bond market, the yield on the 10-year Treasury dipped to 4.00 percent from 4.02 percent, contributing to a decrease in gold prices. After nearing a record high of $4,400 per ounce last week, gold has slipped back towards $4,000, although it remains up over 50 percent for the year.
As the week progresses, all eyes will remain on Wall Street as these developments unfold, crucial for shaping the trajectory of the market and the global economy.
