A television broadcasts US President Donald Trump during a NATO press conference on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, June 25, 2025.
Michael Nagle | Bloomberg | Getty Images
Stocks rose Monday after President Donald Trump said that U.S.-China trade negotiations were going well. Investors also braced for a key Federal Reserve meeting this week.
The S&P 500 climbed 0.5% to 6,615.28, marking its first close above 6,600. The Nasdaq Composite also advanced to a new all-time high, rising 0.9% to 22,348.75. The Dow Jones Industrial Average eked out a small gain, gaining 49.23 points, or 0.1%, to end the day at 45,883.45.
Top U.S. and Chinese officials for a second day discussed tariff rates and a deadline for the sale of Chinese-owned social media TikTok. In a Truth Social post, Trump said the meeting between officials had been positive and that a deal “was also reached on a ‘certain’ company that young people in our Country very much wanted to save,” potentially referring to TikTok. The U.S. will go ahead on its TikTok ban if China does give up its demands for reduced tariffs and tech restrictions, Reuters reported on Monday, citing a a senior U.S. official with knowledge of negotiations.
As talks between the countries continued, China’s market regulator said Nvidia violated the country’s anti-monopoly law and that it would continue its probe into the chipmaker. The chipmaker bucked the broader trend of the Magnificent Seven, closing just below the flatline.
Tesla shares jumped 3% after CEO Elon Musk disclosed an insider purchase of the stock worth about $1 billion, his largest buy in the open market ever and his first significant purchase since 2020. Traders took the buy as a vote of confidence by Musk in the company, which is attempting to turn its focus towards robotics as electric vehicle competition has intensified.
Monday’s gains come after the latest economic data showing a weakening labor market and tame inflation spurred hopes the Fed will cut interest rates when it concludes its meeting on Wednesday. The market was last pricing in a 95.8% certainty that the central bank will lower interest rates by a quarter percentage point, with a meager 4.2% likelihood of a steeper half percentage point cut, according to the CME FedWatch Tool.
“The market is fully expecting the Fed to start a series of rate cuts at this week’s meeting,” Scott Wren, Wells Fargo Investment Institute senior global market strategist, said. “Much of today’s action is traders getting positioned for Wednesday’s announcement. This could be a “Buy the rumor, sell the fact” event but it is safe to say market participants likely to not want to go into Wednesday short the SPX.”
Lower rates could continue to support the stock market, which has received a boost from investor enthusiasm surrounding artificial intelligence, and despite risks to the economic outlook. Investors will also be watching the Senate to see if Stephen Miran will be sworn in as a Fed governor in time for this week’s FOMC meeting.
