Stocks Hit Record Highs on US-China Trade Optimism – US Market Wrap

Riskier assets were boosted by Wall Street’s optimism that a trade agreement between the US and China is imminent, with stocks reaching all-time highs amid a surge in cryptocurrency. Gold and short-term bonds declined as demand for safety declined.
US and Chinese trade negotiators prepared a series of diplomatic victories for Xi Jinping and Donald Trump to announce at a summit this week, the S&P 500 increased 1.2%. The prognosis for profits is getting better as more Federal Reserve interest rate reductions are anticipated.

Tariffs do not seem to have had much of an impact on corporate America, as companies are using price increases and cost reductions to maintain their margins. The S&P 500 firms are seeing a four-year high in sales beats.
Five companies that make up over 25% of the US benchmark. Microsoft, Alphabet, Meta, Amazon, and Apple will release their earnings on Wednesday and Thursday. Megacaps in the Magnificent Seven saw a 2.6% increase.

Two-year Treasury yields increased by two basis points to 3.5%. The value of the dollar dropped. Gold fell below $4,000.