The Dow Jones Industrial Average (DJIA) surged to a new record high on Monday, briefly surpassing the 47,500 mark for the first time as investors regained confidence amid renewed hopes for a US-China trade breakthrough. Market sentiment improved sharply as traders bet that Washington and Beijing could once again strike a last-minute agreement to avoid the impact of President Donald Trump’s proposed tariffs.
Investors bet on another last-minute trade deal
The Trump administration’s recurring pattern of announcing steep tariffs and later walking them back has become a familiar playbook for markets. Investors are now speculating that the latest round of threatened 100%—and in some cases 155%—tariffs on Chinese goods, scheduled to take effect on November 1, may follow the same path.
While there has been little concrete progress on China’s restrictions on foreign access to rare earth minerals, officials have suggested that these policies could be reviewed during upcoming trade talks. However, no movement has been reported regarding the new port fees imposed on foreign cargo vessels docking at Chinese ports.
Tech giants to dominate earnings season
Investor focus will also turn toward corporate earnings, as several major US technology firms report their third-quarter results this week. Five members of the so-called “Magnificent Seven” are scheduled to release earnings, including Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Meta (META), and Microsoft (MSFT). The results could provide fresh insight into the health of the US tech sector and broader equity market momentum.
Markets eye Fed’s policy decision
Attention now shifts to the Federal Reserve’s (Fed) upcoming policy meeting on Wednesday. Markets have largely priced in another 25-basis-point rate cut, with investors keen to gauge whether the central bank signals openness to a third consecutive reduction in December. The tone of Fed Chair Jerome Powell’s post-meeting remarks will likely determine whether the DJIA can sustain its record-breaking rally through the week.
