5 things to know before the stock market opens

Stock futures point to a sharply higher open this morning after major indexes closed last week at record levels. Investor sentiment received a boost after President Donald Trump said he was optimistic the US would reach a trade deal with China and take up ownership of social media app TikTok; Avidity Biosciences (RNA) shares rose after Swiss drugmaker Novartis (NVS) said it would acquire the biotech company. Shares of Argentine companies listed in the United States are witnessing a significant rise after the political party to which President Javier Miley belongs achieved victories in the legislative elections there. Here’s what you need to know today.

1. Major stock indices are preparing to open higher after hitting record highs

Stock futures rose this morning on optimism about an apparent easing of trade tensions between the United States and China, as investors brace for an expected interest rate cut by the Federal Reserve and a wave of earnings reports from major technology companies later in the week. The three major US stock indexes enter today’s session at record levels after each gaining about 2% last week following a moderate inflation report that confirmed expectations that the Federal Reserve will cut its key interest rate on Wednesday. Futures tied to the Dow Jones Industrial Average rose 0.5% recently, while futures tied to the S&P 500 and the tech-heavy Nasdaq rose 0.9% and 1.3%, respectively. Bitcoin was trading at $115,400, up from the weekend low of $111,000. Gold futures fell 2.6% to $4,030 an ounce, as the precious metal continues to pull back from recent highs. The 10-year Treasury yield, which affects borrowing costs on a wide range of consumer loans, rose to 4.02% from 4.00% at Friday’s close. Crude oil futures were slightly lower at around $61.40 after jumping last week in the wake of the US move to impose sanctions on Russian oil companies.

2. Trump appears positive about US-China trade talks

President Donald Trump said early Monday that the United States is in a position to reach a trade deal with China, as the president is scheduled to meet with Chinese leader Xi Jinping on Thursday in South Korea. “I have great respect for President Xi, and we will reach an agreement,” Trump said. Over the weekend, US and Chinese negotiators reached a framework for a trade deal that could lead to lower tariffs and trade barriers between the two countries. The deal is said to delay the implementation of 100% tariffs on Chinese imports that were scheduled to begin on November 1, while Chinese export controls on rare earth elements are also expected to be delayed as the two sides continue negotiations. Trump also expects the two countries to reach an agreement on ownership of the social media app TikTok. The United States also announced that separate trade and mineral agreements have been reached with Malaysia and Cambodia, while frameworks for trade agreements have been reached with Thailand and Vietnam. Shares of US chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD), which are seeking to sell in Chinese markets, rose more than 2% in pre-market trading.

3. Trump says Canada will face additional 10% tariffs because of Reagan’s announcement

Trump said the United States will impose an additional 10% tariff on Canadian goods after the Ontario provincial government published an ad criticizing the tariffs during the world championships on Friday. Ontario Premier Doug Ford said the ad will end airing on Monday. Trump criticized the ad because it included comments by former President Ronald Reagan, which he called a “dangerous misrepresentation of the facts.” Trump had imposed a 35% tariff on Canadian goods not covered by the USMCA, although tariffs on some products such as steel and aluminum are subject to 50% duties. Trump had previously said that trade negotiations with Canada would “end” because of the announcement.

4. Novartis agrees to acquire biotechnology company Avidity Biosciences

Shares of Avidity Biosciences (RNA) rose in pre-market trading after Swiss pharmaceutical giant Novartis (NVS) agreed to buy the biotech company in a deal worth $12 billion. Novartis said in a statement that Avidity will spin off a portion of its early-stage precision cardiology business before the deal closes in the first half of 2026. “The Avidity team has built strong programs delivering industry-leading RNA therapeutics to muscle tissue,” Novartis CEO Vas Narasimhan said in a statement. “We look forward to developing these programs to make a tangible difference in the course of diseases in patients.” Avidity shares jumped more than 40% before the opening bell, while Novartis shares fell about 1%.

5. Argentine stocks listed in the United States rise after the legislative victory of President Miley

Shares of Argentine companies listed in the United States rose after President Javier Miley’s La Libertad Avanza party won a landslide legislative victory. President Donald Trump offered financial support to Argentina, but said the rescue plan depended on the outcome of the election. “Big win in Argentina for Javier Miley, a great candidate supported by Trump,” Trump said on Truth Social. Shares of financial services companies Grupo Financiero Galicia SA (GGAL), Banco BBVA Argentina SA (BBAR) and Banco Macro SA (BMA) rose more than 30% in pre-market trading. Shares of oil company YPF (YPF) jumped about 25%, while shares of e-commerce company MercadoLibre (MELI) rose 7%.