Traders work on the floor of the New York Stock Exchange (NYSE) on Oct. 20, 2025 in New York City.
Spencer Platt | Getty Images
Stocks jumped to new records on Monday after U.S. and China officials cooled tensions over the weekend, laying the groundwork for President Donald Trump and China President Xi Jinping to clinch a trade deal this week.
The Dow Jones Industrial Average rallied 258 points, or 0.5%. The S&P 500 climbed 0.9%, while the Nasdaq Composite was up 1.4%, bolstered by a rise in chip stocks like Nvidia. All three major averages had notched fresh all-time intraday highs in the session.
“I think we have a very successful framework for the leaders to discuss on Thursday,” said Treasury Secretary Scott Bessent from the ASEAN Summit in Kuala Lumpur.
The framework potentially includes a delay of China’s rare earths restrictions that caused the latest trade flare-up, a spiking of Trump’s threatened 100% tariffs on China that were to start Nov. 1 and a resumption of Chinese purchases of soybeans. The agreement may include a resolution of the TikTok dispute with the U.S. getting a deal for the U.S. version of the social video app.
“I have a lot of respect for President Xi, and we are going to come away with the deal,” Trump said on Monday from Air Force One.
Chipmakers, the sector with the most to lose from tensions with China, supported the rally Monday. Nvidia rose about 2%, while Broadcom gained around 1% and On Semiconductor advanced 3%. Tesla and Apple also added around 3% and 1%, respectively, with the latter nearing $4 trillion in market cap.
“Details are still limited, and nothing will be finalized until the Trump-Xi meeting, but a renewed truce now seems near-certain, with China likely fully delaying their rare earth export controls for a year—better than the alternative of an agreement to grant licenses,” said Tobin Marcus of Wolf Research in a note. “This overall better-than-expected outcome should be bullish for markets this week, assuming the Trump-Xi meeting goes well.”
Stocks are coming off a bullish week, with all three major indices hitting record highs last Friday. The Dow Jones Industrial Average posted its first-ever close above the 47,000 mark. The S&P 500 touched 6,800 for the first time ever Friday. All three major benchmarks posted their second week in a row of gains.
Investors expect the Federal Reserve to slash rates on Wednesday, particularly after the Bureau of Labor Statistics released slightly cooler-than-expected inflation data last week. Big Tech companies’ upcoming earnings reports are also on tap. Several “Magnificent 7” stocks, including Alphabet, Amazon, Apple, Meta Platforms and Microsoft, will release their third-quarter results this week.
While investors were encouraged by improving China-U.S. relations, a setback with Canada kept their enthusiasm in check. Trump on Saturday put an additional 10% tariff on Canada imports for not pulling a TV ad featuring former President Ronald Reagan knocking tariffs fast enough.
Qualcomm shares pop 18% after company announces AI chips to compete with AMD, Nvidia
Shares of Qualcomm jumped more than 18% on Monday, reaching a fresh 52-week high, after the company announced that it will release new artificial intelligence accelerator chips to target the AI inference market.
The announcement marks a shift from Qualcomm, which has so far focused on semiconductors for wireless connectivity and mobile devices and not massive data centers. In announcing these new chips, Qualcomm is matching Nvidia and AMD’s graphics processing units, or GPU, offerings and adding competition to the AI semiconductor market.
Qualcomm said that both the AI200, which will go on sale in 2026, and the AI250, planned for 2027, can come in a system that fills up a full, liquid-cooled server rack.
Qualcomm stock performance this year.
Qualcomm shares are up more than 29% year to date.
— Pia Singh, Kif Leswing
Stocks hit new highs
The three leading U.S. indexes soared to new heights on Monday morning.
The Dow Jones Industrial Average surged 325.19 points, or about 0.7%, to a high of 47,532.31. The S&P 500 rose around 1% to 6,856.30, and the Nasdaq Composite jumped 1.5% to 23,547.64.
— Sean Conlon
Stocks open in the green to kick off the trading week
Stocks traded higher on Monday morning.
The S&P 500 rose 0.9% just after the opening bell, while the Nasdaq Composite gained 1.4%. The Dow Jones Industrial Average also moved up 302 points, or 0.6%.
— Sean Conlon
Stocks making the biggest moves premarket
Jeff Greenberg | Universal Images Group | Getty Images
Here are some of the names making moves before the opening bell.
- Avidity Biosciences — Avidity Biosciences surged 43% after Novartis said it would acquire the biopharmaceutical company for about $12 billion in cash. Novartis will pay Avidity shareholders $72 a share, a premium of 46% to Friday’s closing price. U.S.-listed shares of Novartis shed 1.4%.
- Lululemon Athletica — Shares rose 6% after the athletic apparel maker announced it was partnering with the National Football League and Fanatics to launch an apparel collection for all NFL teams.
- GameStop — The video-game retailer gained more than 4% after the White House’s official X account reposted a statement from GameStop’s handle that the “console wars” are over with an AI-generated image of President Donald Trump as a character from video game franchise “Halo.” GameStop’s statement comes after Microsoft said that Xbox game Halo will be available on rival Sony’s PlayStation, the first time that the game will be available on a competing console.
To see more stocks moving in premarket trading, read the full story here.
— Michelle Fox
Janus Henderson jumps on buyout report
Shares of Janus Henderson jumped nearly 14% after Bloomberg reported that Nelson Peltz’s Trian Fund Management is working on an offer to buyout the asset manager.
Trian Fund Management is working with investment firm General Catalyst to acquire the remaining shares of Janus Henderson it doesn’t already own, the report said. The offer values the asset manager at about $7 billion, according to Bloomberg, who cited people familiar with the matter.
— Michelle Fox
JPMorgan upgrades discount retailer Five Below
JPMorgan sees several upcoming catalysts for Five Below as the fall holiday season approaches.
The bank upgraded shares of the discount retailer to an overweight rating from neutral. It also raised its price target to $186 per share from $154.
Shares of Five Below have surged 49% this year. JPMorgan’s new price target is approximately 19% above where the stock closed on Friday afternoon.
CNBC Pro subscribers can read more here.
FIVE, 1-day
— Lisa Kailai Han
Keurig Dr Pepper gains after latest quarterly results
A Keurig coffee maker at a store in New York, US, on Wednesday, Jan. 24, 2024.
Eilon Paz | Bloomberg | Getty Images
Keurig Dr Pepper shares jumped more than 8% in premarket trading on Monday after the beverage company posted better-than-expected third-quarter revenue and raised its full-year revenue growth outlook.
The company posted revenue for the quarter of $4.31 billion, above the $4.15 billion that analysts polled by FactSet had penciled in. Adjusted earnings came in line with the consensus estimate at 54 cents per share.
Keurig Dr Pepper also increased its revenue growth guidance for the full year, now expecting that to be in the high single-digit percentage range compared to last year. That’s up from its prior guidance of a mid-single-digit percentage range.
KDP, 1-day
— Sean Conlon
Global stocks rally on U.S.-China trade deal hopes
Global markets rallied at the start of the week as investors were buoyed by growing optimism that the U.S. and China are nearing an agreement on trade.
The pan-European Stoxx 600 added about 0.3% on Monday morning, which followed earlier solid gains across Asian markets, with Japan’s Nikkei 225 breaching the 50,000 mark for the first time to close up 2.46% and South Korea’s Kospi rising 2.57% on the day. Read more.
— Hugh Leask
Rare earth stocks fall after Bessent says China to delay export controls
Shares of several U.S.-listed rare earth miners fell on Monday as U.S. officials said they expect China to delay introducing export controls on critical minerals as part of a broader trade deal.
Critical Metals fell 8.5% in premarket trade, USA Rare Earth declined 7.2%, MP Materials was down 5.3% and Trilogy Metals lost 5%. Energy Fuels and NioCorp Developments, meanwhile, traded 4% and 6% lower, respectively.
U.S. Treasury Secretary Scott Bessent told NBC News’ “Meet The Press” on Sunday that Washington and Beijing were expected to reach a deal to avoid a new 100% U.S. tariff on Chinese goods, with Beijing set to defer on imposing strict rare earth export controls.
His comments come ahead of a high-stakes meeting between Chinese leader Xi Jinping and U.S. President Donald Trump on Thursday. Read more.
Critical Metals shares, 1-day
— Sam Meredith
Novartis strikes $12 billion deal to acquire Avidity Biosciences
A sign of Swiss pharmaceutical giant Novartis is seen on the top of a building at Novartis Campus in Basel on Sept. 9, 2025.
Fabrice Coffrini | AFP | Getty Images
Swiss pharmaceutical giant Novartis has agreed to buy biotechnology company Avidity Biosciences for about $12 billion, the company said Sunday.
Novartis will pay Avidity shareholders $72 a share in cash, a premium of 46% to the company’s Friday closing price.
The deal is expected to close in the first half of 2026, after Avidity spins out parts of its business, including its early-stage precision cardiology programs, the company said in a statement.
Read the full story here.
— Liz Napolitano
Stock futures rise
The S&P 500 and Nasdaq 100 rose 0.7% and 0.9%, respectively, around 6 p.m. ET on Sunday. Dow futures added 290 points, or 0.6%.
— Liz Napolitano
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