US stocks close at record highs on US-China trade truce optimism
The S&P 500, Nasdaq 100, and Russell 2000 all started off the week with record highs ahead of a big earnings week, with five of the members of the Magnificent 7 reporting.
US stocks kicked off the week on a positive note, after top officials from the US and China signaled that positive discussions this weekend had cleared the runway for the world’s two largest economies to reach a deal.
The S&P 500 rose 1.2%, the Nasdaq 100 outperformed with a 1.8% advance, and the Russell 2000 gained 0.3%, with all three setting record closing highs.
Tech, consumer discretionary, and communications services (home to the Magnificent 7 stocks) were the three S&P sector ETFs to rise at least 1% on the day.
Stocks that moved higher:
Semiconductor stocks rose on positive discussions between the US and China, sending Nvidia, Broadcom, and Intel higher.
The US-China trade news also lifted wafer fab equipment makers Applied Materials and Lam Research.
Separately, Qualcomm surged after revealing new AI chips for data centers and that Saudi Arabia’s HUMAIN will be the first big buyer.
Fermi spiked after announcing a nuclear deal with South Korean industrial firms Doosan Enerbility and Hyundai Engineering & Construction ahead of President Trump’s visit to the country this week.
EV maker Rivian rose as bullish options flows lifted the stock ahead of its third-quarter earnings, set to drop next week.
Palantir touched a new intraday high after signing a new defense deal with Poland.
Strive Inc., the Vivek Ramaswamy-backed bitcoin treasury company, jumped again on elevated retail interest.
Stocks that moved lower:
POET Technologies tumbled after announcing a $150 million share offering to two new fundamental investment managers.
Intellia tanked after it paused late-stage CRISPR gene-editing trials following the hospitalization of one patient, dragging down Editas Medicine, Beam Therapeutics Inc, CRISPR Therapeutics, and Prime Medicine with it.
Gold sank as retail traders pulled money from commodity ETFs like SPDR Gold Shares ETF.
The likeliness of a US-China trade truce wasn’t all good news, as rare earth stocks such as Critical Metals, USA Rare Earth, Lithium Americas, United States Antimony Corp., and MP Materials all cratered on the news.
