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U.S. stock indexes closed at record highs Monday after news from the Trump administration that Washington and Beijing have agreed to what officials described as a “substantial framework” in ongoing trade negotiations.
The announcement came ahead of a planned meeting on Thursday in South Korea between President Donald Trump and Chinese leader Xi Jinping. Treasury Secretary Scott Bessent said the discussions have advanced enough for both sides to prepare for presidential-level talks.
“I think we have reached a substantial framework for the two leaders who will meet in Korea next Thursday,” Bessent told ABC News during the ASEAN Summit in Kuala Lumpur, Malaysia. “The president had given me maximum leverage when he threatened 100% tariffs if the Chinese imposed their rare earth global export controls, so I think we have averted that.”
Investors reacted swiftly. The S&P 500 gained 1.23 percent to finish at 6,875.16, the first close above the 6,800 mark, according to CNBC. The Nasdaq Composite rose 1.86 percent to 23,637.46, while the Dow Jones Industrial Average climbed 337.47 points to 47,544.59.
Bessent said negotiations are also progressing on U.S. agricultural exports, including soybeans. Chinese purchases of American-grown soybeans had largely halted during the trade conflict. China typically buys more than half of U.S. soybean exports, the American Soybean Association reported for 2023 and 2024.
“I believe, when the announcement of the deal with China is made public, that our soybean farmers will feel very good about what is going on, both for this season and the coming seasons, for several years,” Bessent said.
The Treasury secretary did not share specifics on timing or other details of the proposed trade package. The White House has pushed for commitments on manufactured goods, technology cooperation and supply chain security as part of broader economic engagement with Beijing.
Financial analysts said Wall Street’s response reflected optimism that the two largest economies are moving toward stability after years of market uncertainty driven by tariff threats and shifting trade policies.
More details are expected as the upcoming meeting between President Trump and Xi nears, which could send financial markets soaring even higher if positive economic developments continue.