The mere prospect of a U.S.-China trade deal has sent global markets surging. On Monday, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite closed at record highs in the U.S., while Japan’s Nikkei 225 and South Korea’s Kospi also posted gains during Asian trading hours. European stocks rose as well, though the Stoxx 600 remained just shy of its all-time high.

“A lot of the forecasts for technology have been without the benefit of China, so once you can add China back into the equation, that would probably be fairly optimistic for the markets,” said Sam Stovall, chief investment strategist at CFRA Research. Tech giants like Nvidia have issued estimates excluding shipments to China, highlighting how trade restrictions have complicated outlooks. A formal trade deal could allow Big Tech companies to revise guidance upward, potentially triggering another buying wave.

Beyond technology, agricultural commodities like soybeans are also in focus. Reports suggest China may ease its unofficial boycott of U.S. soybeans as part of the deal — a small but symbolic concession that would benefit U.S. farmers.

Key developments today include U.S. President Donald Trump indicating that a trade agreement with China is imminent, with a TikTok-related deal potentially coming by Thursday. Meanwhile, Amazon is set to announce the largest layoffs in its history, impacting almost every division and potentially affecting up to 30,000 employees, according to Reuters. Tesla’s Board Chair Robyn Denholm warned that CEO Elon Musk’s continued position hinges on board approval of his $1 trillion pay package.

U.S. stock indices reached record highs, with the S&P 500 closing above 6,800 for the first time, and the Russell 2000 rising alongside. Pan-European markets also saw gains, with the Stoxx 600 up 0.22%. Analysts suggest investors should consider moving cash from money market funds as Federal Reserve rate cuts approach, which could affect returns on cash instruments.