As the United States and China set up a framework for agreement in trade talks, raising expectations for progress, major New York stock indexes opened higher together.
As of 9:45 a.m. on the 27th (local time) on the New York Stock Exchange, the Dow Jones Industrial Average rose 177.52 points (0.38%) from the previous session to 47,384.64. The Standard & Poor's (S&P) 500 rose 0.81% to 6,846.92, and the Nasdaq composite jumped 1.37% to 23,522.81.
With the fifth high-level U.S.-China trade talks, held in Kuala Lumpur, Malaysia, over the weekend wrapping up positively, market sentiment heated up further. Scott Bessent, the U.S. Treasury secretary, said in an interview with foreign media, "China will defer rare earth export control measures for one year, and the United States is also unlikely to impose a 100% additional tariff on China." As a result, expectations are surging for the U.S.-China summit scheduled for the 30th.
Amid expectations for eased trade tensions, investors rushed into artificial intelligence (AI) and semiconductor-related stocks. With the possibility of increased exports to the Chinese market coming to the fore, Nvidia, Broadcom and ASML all rose in unison.
The Philadelphia Semiconductor Index jumped more than 2%, extending gains. Nvidia climbed 2.34%, reclaiming the $190 level, and Qualcomm surged 6.37% after unveiling a new AI chip. Intel also rose 4.88%, extending its recent run of solid results. Mega-cap tech stocks such as Meta, Alphabet and Tesla also gained around 2%.
Meanwhile, major European stock indexes were mixed by issue. The Euro Stoxx 50 rose 0.39%, and Britain's FTSE added 0.10%. In contrast, Germany's DAX and France's CAC 40 fell 0.11% and 0.13%, respectively.
International oil prices inched up. West Texas Intermediate (WTI) for December delivery rose 0.20% from the previous session to $61.62 a barrel.