U.S. stocks climbed to a record high as rising optimism for a trade deal with China combined with solid earnings and bets the Federal Reserve will cut rates.
The S&P 500 finished the day up +0.55% to 3039, its highest close on record and up more than 20% year to date completing a rebound from an August sell-off. The Nasdaq gained +1.0% to 8326, a few points shy of its highest close in history. The Dow, meanwhile, gained +0.5% and is within 1% of July’s high. Microsoft shares contributed to Monday’s gains, rising 2.5% on news the company won a $10 billion cloud contract from the Defense Department. Shares of Tiffany surged 30% after LVMH Moet Hennessy Louis Vuitton confirmed it is talks for a potential takeover that would value the iconic jewellery brand at $14.5 billion.