(MENAFN) US equities ended Monday on a positive note, driven by hopes of reduced trade frictions as US President Donald Trump prepares to meet his Chinese counterpart, along with growing expectations of a Federal Reserve rate cut.

The Dow Jones Industrial Average increased by 0.71%, or 337.47 points, reaching a historic peak of 47,544.59.

Meanwhile, the Nasdaq advanced 1.86%, or 432.59 points, closing at a record 23,637.46. The S&P 500 also rose 1.23%, or 83.47 points, finishing at 6,875.16, marking its first close above the 6,800 mark.

Markets reacted positively after indications over the weekend suggested a possible easing of trade tensions between the United States and China, in anticipation of Trump’s forthcoming meeting with Chinese President Xi Jinping.

Regarding the upcoming summit, Trump stated from Air Force One on Monday: “I have a lot of respect for President Xi, and we are going to come away with the deal."

Treasury Secretary Scott Bessent, speaking from the ASEAN Summit in Kuala Lumpur, Malaysia, added: “I think we have a very successful framework for the leaders to discuss on Thursday.”

This proposed framework could include China resuming purchases of US soybeans, scrapping Trump’s planned 100% tariffs on Chinese goods set for November 1, and postponing China’s export restrictions on rare earth elements, which had triggered the latest trade conflict.

Additionally, the agreement might address the TikTok issue, potentially involving a contract for the US version of the popular social video application.

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