Global Stocks Rally to Record Highs as Trade Tensions Ease and Rate Cuts Loom

Global equity markets surged on Monday, propelling major US stock indexes to new all-time highs as easing trade tensions and expectations of interest-rate cuts later this week boosted investor confidence.

The S&P 500 climbed 1.2%, marking a historic record close. Optimism grew after Chinese and US trade negotiators reportedly secured several diplomatic wins expected to be announced by Donald Trump and Xi Jinping during their upcoming summit.

An index of US-listed Chinese companies advanced 1.6%, reflecting renewed optimism in cross-border trade and technology sectors. Meanwhile, cryptocurrencies gained ground as investors shifted toward riskier assets, while gold steadied in early Tuesday trading after a sharp 3% drop that pushed it below $4,000 per ounce.

Analysts said that signs of progress in trade talks combined with expectations of a Federal Reserve rate cut have injected fresh momentum into global markets. Investors are now closely watching the Fed’s upcoming policy announcement, which is expected to shape the next phase of the rally.