Wall Street’s main indexes were set to open at record highs on Monday due to hopes for a U. S.-China trade deal, with a significant week ahead for Big Tech earnings and a likely Federal Reserve rate cut. President Trump and China’s Xi Jinping will meet on Thursday after negotiators outlined a deal to pause U. S. tariffs and Chinese export controls on rare earths.
U. S. rare earth mining shares, including MP Materials, USA Rare Earth, and Trilogy Metals saw declines of 4.4%, 6.1%, and 5%, respectively. By 08:19 a.m. ET, Dow E-minis rose 220 points, Nasdaq 100 E-minis gained 329.25 points, and S&P 500 E-minis increased by 56 points. The VIX, Wall Street’s fear gauge, reached a one-month low.
Chinese company shares listed in the U. S. gained premarket, with Alibaba and JD.com both rising around 3%. The S&P 500 and Nasdaq experienced their largest weekly gains since August, thanks to lower-than-expected inflation data that prompted anticipation of a 25-basis-point rate cut from the Fed.
More than 170 companies are expected to report earnings this week, particularly focusing on major tech companies. The collective earnings growth expectation for the S&P 500 has increased to 10.4% year-on-year. Economic concerns could lower inflation worries but might also pressure earnings growth.
In premarket trading, Argentine companies saw significant jumps after President Javier Milei’s election victory, with YPF rising 31% and Grupo Supervielle increasing by 38%. Keurig Dr Pepper surged 8% after raising its sales forecast, whereas MP Materials fell again.
With information from Reuters
