US stocks open higher as hopes rise for a U.S.–China trade truce. Treasury Secretary Scott Bessant told NBC’s Meet the Press that the two countries have reached a “very successful framework” for a deal ahead of President Trump’s Thursday meeting with President Xi Jinping. Futures rallied on the comments, with all three major indexes set to open at record highs. Meanwhile, the Federal Reserve is expected to cut rates by 25 basis points on Wednesday — the second consecutive meeting with a cut — even as policymakers continue to operate without complete government data amid the ongoing shutdown. Big Tech takes center stage this week, with five of the Magnificent Seven — Meta (META), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Apple (AAPL) — all set to report earnings. Investors will closely watch AI spending, ad revenue, and capital expenditures trends as companies continue massive data center buildouts.

In trending tickers, Novartis (NVS) agreed to acquire Avidity Biosciences (RNA) for $12B, expanding its rare disease pipeline. Huntington Bancshares (HBAN) announced a $7.4B deal to acquire Cadence Bank (CADE), extending its footprint across the South. And Keurig Dr Pepper (KDP) raised its full-year forecast while revealing plans to spin off its coffee business after acquiring Peet’s Coffee from JAB Holdings.

Takeaways:

US–China trade truce talks lift markets; tariff hikes may be delayed

Fed expected to cut rates again as officials operate without complete data

Meta, Microsoft, Alphabet, Amazon, and Apple headline tech earnings week

Novartis buys Avidity for $12B; Huntington to buy Cadence Bank; Keurig to spin off coffee unit

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