Copyright reuters
SummaryCompaniesIndexes up: Dow 0.42%, S&P 500 0.89%, Nasdaq 1.54%Rare earth miners fall on signs of U.S.-China trade dealU.S.-listed Argentina stocks gain after Milei's election Oct 27 (Reuters) - Wall Street's main indexes notched record highs on Monday as excitement around a potential U.S.-China trade deal set the tone for a week packed with Big Tech earnings and a widely expected interest rate cut. Earnings from "Magnificent Seven" members Microsoft (MSFT.O), opens new tab, Apple (AAPL.O), opens new tab, Alphabet (GOOGL.O), opens new tab, Amazon (AMZN.O), opens new tab, and Meta (META.O), opens new tab later this week will test the endurance of the AI rally. The five megacaps gained between 1% and 3%. Advertisement · Scroll to continue President Donald Trump and China's Xi Jinping will meet on Thursday to decide on a framework that could pause tougher U.S. tariffs and China's rare-earth export curbs, easing market jitters around a trade war and sending Wall Street's "fear gauge" VIX (.VIX), opens new tab down to a one‑month low. U.S.-listed shares of Chinese companies gained on Monday. Alibaba Group Holding , JD.com and PDD Holdings (PDD.O), opens new tab rose more than 2% each, while Baidu added 4.8%. "Markets just want to be positive. Investors want a reason to buy and they see that reason in whether it's lower rates, trade deals, decent earnings or the continued dominance of the AI trade," said Melissa Brown, managing director of investment decision research at SimCorp. Advertisement · Scroll to continue At 11:21 a.m. ET, the Dow Jones Industrial Average (.DJI), opens new tab rose 199.11 points, or 0.42%, to 47,406.23, the S&P 500 (.SPX), opens new tab gained 60.43 points, or 0.89%, to 6,852.12 and the Nasdaq Composite (.IXIC), opens new tab gained 353.95 points, or 1.54%, to 23,560.95. Qualcomm (QCOM.O), opens new tab surged 15% after unveiling two artificial intelligence chips for data centers, with commercial availability from next year. AI chip leader Nvidia (NVDA.O), opens new tab rose 2.7%. Tech stocks (.SPLRCT), opens new tab added 1.4% and the Philadelphia SE Semiconductor index (.SOX), opens new tab hit a fresh record high. "To justify the valuations, we are going to have to see exceedingly good earnings. There's a lot of expectation that those earnings are going to be good," Brown said. FED RATE CUT FULLY PRICED IN Cooler inflation data last week all but sealed bets for a 25-basis-point rate reduction from the Federal Reserve on Wednesday, and investors will closely monitor Chair Jerome Powell's comments for clues on a December cut, as the government shutdown hinders key data releases. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2122970584 About ConnatixV2122970584 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE The rate-sensitive Russell 2000 (.RUT), opens new tab rose 0.3%, hovering close to record highs. Among other stocks, Keurig Dr Pepper (KDP.O), opens new tab jumped 6.8% after lifting its annual sales forecast and raising about $7 billion to finance its purchase of Dutch coffee giant JDE Peet's. Lululemon (LULU.O), opens new tab shares were up 3.1% after the company announced a partnership with NFL to launch an apparel collection. U.S.-listed shares Of Argentine companies jumped after President Javier Milei's election victory. YPF gained 30%, while Grupo Supervielle surged 50%, and Banco Macro and Grupo Financiero Galicia advanced 40% each while Banco BBVA Argentina rose 45%. Janus Henderson (JHG.N), opens new tab jumped 13.5% after confirming an acquisition proposal from Trian and General Catalyst. Advancing issues outnumbered decliners by a 1.49-to-1 ratio on the NYSE and by a 1.23-to-1 ratio on the Nasdaq. The S&P 500 posted 28 new 52-week highs and three new lows while the Nasdaq Composite recorded 109 new highs and 34 new lows. Reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru; Editing by Pooja Desai and Devika Syamnath Purchase Licensing Rights
