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Wall Street Hits Fresh Highs on U.S.–China Thaw Signals as Fed Meeting Begins

Traders await a probable Fed rate cut to confirm the rally.

Overview

  • All three major U.S. indexes set new highs Monday, lifted by signs of a possible U.S.–China trade understanding and by optimism ahead of central‑bank guidance.
  • Treasury official Scott Bessent said Beijing is considering delaying rare‑earth export curbs and resuming U.S. soybean purchases in exchange for Washington forgoing new 100% tariffs.
  • President Donald Trump voiced confidence about a Thursday meeting with Xi Jinping, reinforcing risk appetite even as formal details of any agreement remain unannounced.
  • The Fed’s two‑day meeting starts Tuesday with markets pricing a 25‑basis‑point cut, after September CPI showed persistent year‑over‑year inflation and with guidance in focus.
  • Europe tracked the cautious tone as Paris inched higher Monday then slipped Tuesday, while stock‑specific moves stood out: Netflix fell on a weaker profit tied to a Brazil tax dispute, Qualcomm jumped on new AI chips, and iRobot tumbled after saying no buyer emerged.