Wall Street Advances Amid Trade Talks and Earnings Reports

U.S. stocks climbed on Monday, with the S&P 500 rising 1%, the Dow Jones Industrial Average increasing by 0.5%, and the Nasdaq composite gaining 1.7%. These gains build upon record highs set the previous Friday.

Investors are closely watching the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping, scheduled for Thursday. U.S. Treasury Secretary Scott Bessent indicated that there's "a framework" for discussion, while President Trump stated, "We feel good" about working things out with China.

The Federal Reserve is also in focus, with an interest rate announcement expected on Wednesday. Traders widely anticipate a quarter-point rate cut to support the slowing job market. However, the Fed has cautioned that accelerating inflation could alter this course.

In corporate news, Keurig Dr Pepper reported quarterly profits that met analysts' expectations, benefiting from higher prices for K-Cup products. Major tech companies, including Alphabet, Meta Platforms, Microsoft, Amazon, and Apple, are set to release earnings reports this week, with investors keen to see growth in artificial intelligence investments.

Mergers and acquisitions also influenced the market. Huntington Bancshares announced plans to acquire Cadence Bank for $7.4 billion in stock, leading to a 2.7% rise in Cadence's shares, while Huntington's shares fell 4%. Additionally, Novartis agreed to purchase Avidity Biosciences for $12 billion, resulting in a 42.4% surge in Avidity's stock.

Asian markets experienced gains ahead of the U.S.-China meeting. Japan's Nikkei 225 rose 2.5%, surpassing the 50,000 level for the first time, amid high public support for Prime Minister Sanae Takaichi's market-friendly policies.

In the bond market, the yield on the 10-year Treasury edged down to 4.00% from 4.02% late Friday. Meanwhile, gold prices declined, retreating toward $4,000 per ounce after nearing $4,400 last week, though the metal remains up over 50% for the year.