The S&P 500 jumped 1.4% Monday as Treasury Secretary Scott Bessent described productive talks with China on artificial intelligence. The Dow Jones Industrial Average and Nasdaq composite rallied alongside it, while oil prices slid and Bitcoin surged 6%.
S&P 500 leads a broad rally
The benchmark S&P 500 rose 1.4% Monday, flexing its muscles as technology and communication services stocks led the advance. The Nasdaq composite fared best, soaring 2% and punching bullishly above a trendline, while the Dow Jones Industrial Average popped more than 300 points, or 0.6%.
Nvidia gained 2%, moving ahead of Nike, Amazon and Alphabet among the session's winners. Chevron paced the downside, falling more than 2% as energy shares lagged the broader market.
Bessent touts progress on China AI dialogue
Equities rallied in part after Bessent pointed to a productive session with Chinese Vice Premier He Lifeng in New York on Sunday, covering artificial intelligence. According to Investor's Business Daily, citing the Financial Times: "We will likely meet again in two months, probably in Shenzhen."
The two sides also discussed extending their one-year trade war truce but did not reach an agreement, though the current truce does not expire until Nov. 10. More progress could come before President Donald Trump meets Chinese leader Xi Jinping in Washington on Thursday.
Oil slides, equal-weight index lags
West Texas Intermediate crude futures skidded nearly 6% to around $94.70 per barrel, on track for a fourth straight losing session amid hopes for U.S.-Iran peace talks. The 10-year Treasury yield dipped four basis points to 4.96%. Bitcoin vaulted 6% to about $86,000.
Big Tech's dominance in the rally showed up in the numbers: the Invesco S&P 500 Equal Weight ETF has rallied by less than 11% so far this year, trailing the market-cap-weighted index's gain of nearly 13%.
Source: Investor's Business Daily
Trading involves risk.
Risk Disclaimer
