New York Stock Exchange Rises on Trade Agreement Optimism

Rise in the New York Stock Exchange

The New York stock exchange started the week on a positive note with increasing optimism regarding a potential trade agreement between the US and China. In the first trading day of the week, the Dow Jones index rose by 0.67% to 47,530.09 points, while the S&P 500 index increased by 0.92% to 6,856.09 points and the Nasdaq index climbed by 1.45% to 23,544.00 points. Expectations of reducing trade tensions between the US and China boosted investors' risk appetite, pushing stock prices upward.

President Trump's Trade Diplomacy Activities

US President Donald Trump announced that trade agreements were reached with Malaysia, Cambodia, Thailand, and Vietnam as part of his Asia tour. This Thursday, prior to Trump's meeting with Chinese President Xi Jinping in South Korea, senior officials from both countries came together to outline the trade framework. US Treasury Secretary Scott Bessent stated that Trump's threat to impose additional tariffs on China provided significant leverage for negotiations and expressed optimism that a positive framework has been reached. Additionally, Bessent noted that potential delays in China's critical mineral exports could positively impact the investment market.

Important Tips for Investors

On the other hand, Trump pointed out that he had distorted his speech regarding tariffs historically attributed to Ronald Reagan by publishing a "fake" advertisement, highlighting that he decided to increase the tariffs imposed on this country by 10%. Analysts emphasized that the likelihood of reaching a trade agreement between the US and China this week has increased investors' risk tolerance. The inflation data released on Friday, which came in below expectations, has strengthened predictions that the Federal Reserve (Fed) will implement a 25 basis point interest rate cut in its monetary policy meeting this week.

Notable Declines in Company Stocks

On the corporate side, the possibility of China delaying its export controls on rare earth elements appeared to have certain effects on stock prices. Shares of USA Rare Earth started the day down by 10%, Energy Fuels fell by 9%, and MP Materials decreased by 7%. Moreover, the upcoming financial results announcements from technology giants Microsoft, Alphabet, Meta, Apple, and Amazon continue to be a focus for investors.