Stock futures rise on US-China trade optimism after indexes hit records on Friday; Chipmaker shares lead fees

Stock futures rose sharply on Monday, led by chipmakers and technology stocks, on optimism that the United States and China will strike a trade deal, with President Donald Trump and Chinese leader Xi Jinping scheduled to meet later this week.

Futures tied to the tech-heavy Nasdaq, the S&P 500, and the Dow Jones Industrial Average rose 1.3%, 0.9% and 0.6%, respectively, after all three indexes hit new intraday and close highs on Friday after tepid inflation data boosted expectations that the Federal Reserve will cut interest rates this week.

US and Chinese negotiators said trade discussions went well over the weekend, with US Treasury Secretary Scott Bessent telling reporters: “I think we have a very successful framework for leaders to discuss on Thursday.”

Shares of chipmakers and other technology companies rose before the bell, with Nvidia (NVDA) and Advanced Micro Devices (AMD) each rising about 2.5%, with the latter rising 7.6% to an all-time high on Friday after a report that IBM (IBM) had determined it could run certain quantum computing algorithms on an easily accessible AMD chip.

Five members of the so-called Magnificent Seven will release quarterly earnings this week, with Microsoft (MSFT), Meta Platforms (META), and Google parent Alphabet (GOOGL) scheduled to report earnings on Wednesday, and Amazon (AMZN) and Apple (AAPL) scheduled to report on Thursday. All five stocks were higher before the bell.

However, MP Materials (MP) shares fell 5% after Besant said he expects China to postpone export restrictions on rare earth elements. MP Materials is the largest U.S. producer of rare earths.

The 10-year Treasury yield rose to 4.02%, while the US dollar index, which measures the value of the US currency against a basket of foreign currencies, fell to 98.81. Bitcoin was trading at around $115,500, up from an intraday low of around $113,000.

Safe-haven gold futures fell 2% to $4,050 an ounce, while West Texas Intermediate crude futures fell 1% to $60.85.