Strong Rise in U.S. Stocks: Trade Talks Raise Hopes

US Stock Markets Close Higher

The indices traded on the New York stock exchange showed a strong increase on the first trading day of the week. The Dow Jones index rose by %0.71 to 47,544.59 points, the S&P 500 index gained %1.23, reaching 6,875.16 points, and the Nasdaq index increased by %1.86 to 23,637.46 points. This rise is attributed to optimism that trade tensions between the US and China may ease.

Trade Talks and Strategic Agreements

With the continuation of US President Donald Trump's tour of Asia, it was reported that agreements were made regarding trade with Malaysia, Cambodia, Thailand, and Vietnam over the weekend. Additionally, ahead of Trump's meeting with Chinese President Xi Jinping in South Korea, senior officials from both countries gathered to establish a trade framework.

US Treasury Secretary's Statements

US Treasury Secretary Scott Bessent stated that Trump's threat of a %100 additional tariff on China has provided him with a significant advantage in negotiations. Bessent expressed his belief that a trade framework would be established to prevent these threats. Furthermore, it is expected that China will delay its export controls on critical minerals.

Analysts' Evaluations

Analysts emphasized that optimism regarding a significant trade agreement between the US and China this week has increased investors' risk appetite.

Focus on Interest Rate Decision

The inflation data released on Friday falling below expectations has led to a strong assumption that the Federal Reserve (Fed) will make a 25 basis points cut in interest rates during its meeting this week.

Sector Performance

On the corporate side, the expectation that China may delay its export controls on rare earth elements has led to a decline in the shares of some companies operating in the sector. Specifically, Energy Fuels shares fell by nearly %11, USA Rare Earth shares declined by more than %8, and MP Materials shares lost over %7 in value.

On the other hand, Qualcomm's shares rose by approximately %11 as it prepares to compete in the data center market by introducing a new artificial intelligence chip. Additionally, as a result of a $1 billion collaboration between Advanced Micro Devices (AMD) and the US Department of Energy, AMD's shares gained %3 in value.

Highlight Companies' Financial Reports

Investors are also eagerly awaiting the earnings reports to be released this week by technology giants such as Microsoft, Alphabet, Meta, Apple, and Amazon.