U.S. stocks advanced on Monday, buoyed by upbeat remarks from former President Donald Trump on U.S.-China trade negotiations and strong premarket gains from Tesla.
The Dow Jones Industrial Average added nearly 100 points, while the S&P 500 rose 0.4%. The Nasdaq Composite outperformed with a 0.6% gain. The rally comes as Wall Street eyes the Federal Reserve’s two-day policy meeting on Sept. 16–17, with investors widely expecting an interest rate cut.
Trade talk optimism fuels confidence
Trump commented on progress in U.S.-China tariff discussions via Truth Social, hinting that both nations may be edging closer to a deal. He also made reference to a potential resolution surrounding TikTok, further boosting sentiment.
The upbeat tone arrives against the backdrop of softer labor data and sticky inflation. According to market trackers, Wall Street now sees a 96% probability of a Fed rate cut, with most traders betting on a 25-basis-point reduction. Analysts say such a move could reinforce the bullish momentum already pushing stocks and risk assets higher.
Bitcoin steadies after rebound
The stock market’s tailwinds extended into digital assets. Bitcoin briefly bounced from below $110,000 to over $116,000 before retreating slightly as traders locked in weekend profits.
Tesla pops on Musk’s $1 billion purchase
Among individual stocks, Tesla stood out. Shares surged more than 7% in premarket trading after CEO Elon Musk disclosed a $1 billion personal purchase of TSLA stock.
The move follows Tesla’s announcement that Musk could unlock access to $1 trillion worth of company shares if the automaker achieves several ambitious long-term milestones. Investors took the signal as a show of confidence in the EV giant’s trajectory, sparking renewed enthusiasm across the sector.
With optimism on trade talks, expectations of easier Fed policy, and Tesla’s surge leading the way, analysts say markets could be on track for fresh record highs in the coming weeks.
