US Equity Indexes Touch Record Highs in Anticipation of China Trade Deal

MT Newswires Live10-28

US equity indexes rose in midday trading, breaking records, amid expectations of a trade deal with China, the world's second-largest economy.

The Nasdaq Composite advanced 1.5% to 23,547.4, after hitting a record 23,586.687 earlier in the session. The S&P 500 advanced 0.9% to 6,851.1, also scaling a new peak of 6,860.10 intraday. The Dow Jones Industrial Average rose 0.4% to 47,405.7, posting earlier an all-time high of 47,532.31.

Technology, communication services, and consumer discretionary were the top gainers intraday.

US President Trump and Chinese President Xi Jinping will meet on Thursday to finalize a potential trade deal framework. Both nations made progress in Malaysia, with China agreeing to ease rare earth export limits and buy large volumes of US soybeans in return for tariff relief. China's top negotiator, Li Chenggang, said that both sides had reached a preliminary consensus and would proceed with internal approvals before the leaders' meeting.

Most US Treasury yields traded higher. The 10-year yield climbed 2.7 basis points to 4.02% and the two-year yield rose 2.8 basis points to 3.51%.

In company news, Qualcomm (QCOM) shares surged 20% intraday, leading gainers on the S&P 500 and the Nasdaq, after the company unveiled chip-based accelerator cards and racks, targeting the artificial intelligence semiconductor market dominated by companies such as Nvidia (NVDA).

Keurig Dr Pepper (KDP) shares jumped 7% intraday, the second-biggest return on the S&P 500 and the Nasdaq, after the company reported a year-over-year increase in Q3 adjusted earnings and net sales. The company also raised its full-year sales growth outlook and entered into two investment agreements totaling $7 billion.

Albemarle (ALB) reported that it agreed to sell a 51% stake in Ketjen's refining catalyst business to KPS Capital Partners and its 50% interest in the Eurecat joint venture to Axens, expecting to receive about $660 million in proceeds. Albemarle plans to use proceeds for debt reduction and general corporate purposes. Shares dropped 4.8% intraday, the second-worst performer in the S&P 500.

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