The S&P 500 climbed 1.2% to finish at an all-time closing high of 6,875, extending a multi-week rally. The tech-heavy Nasdaq Composite rose nearly 2% to a record close of 23,637, while the Dow Jones Industrial Average gained 0.7% to end at a new high of 47,544 points.
Technology stocks led the advance, with Tesla jumping 4.3%, Alphabet rising 3.6%, and Nvidia gaining 2.8%, providing a significant lift to broader market indexes.
Qualcomm shares surged 11% after the company announced plans to launch its own semiconductor chips next year, positioning itself as a direct competitor to Nvidia.
Gold slides
Gold prices fell sharply as investor appetite shifted toward risk assets. Gold futures briefly dropped below $4,000 per ounce and were down more than 3% by late afternoon. The metal was on track for its fifth decline in six sessions, following a drop of more than 5% last Tuesday, its steepest one-day fall in over a decade, as investors took profits after a historic rally in recent months.
Trade developments
The rally followed reports that Washington and Beijing had reached a framework agreement on a trade deal, signaling a possible rollback of the 100% tariffs threatened earlier this month. President Donald Trump and Chinese President Xi Jinping are expected to meet on Wednesday to further discuss the proposed trade truce.
Earlier this month, the US administration warned it would impose additional tariffs after China announced new requirements for foreign companies seeking to export products containing rare earth minerals. China controls roughly 70% of global rare earth production, and the proposed restrictions raised concerns over supply chain disruptions.
If negotiations had failed, the proposed tariffs would have added to the existing 30% duties already imposed on Chinese goods. However, a successful agreement could prevent the tariff increase and potentially ease China’s export controls. The framework is also expected to include the resumption of Chinese purchases of US soybeans, a key agricultural export that China has not bought since April.
