U.S. stock indexes jumped at the opening of trading on Monday, September 15, after U.S. President Donald Trump announced progress in trade talks with China and hinted at a possible deal on TikTok, CNBC writes. The S&P 500 rose 0.5 percent and hit an all-time high. The Nasdaq Composite rose 0.8% - also to a new record. The Dow Jones Industrial Average added 0.2%.

What happened in the negotiations

After the second day of US-China trade talks taking place in Madrid, US President Donald Trump told social media outlet Truth Social that the meeting between the two delegations was "very successful". "I will be speaking [by phone] with Chairman Xi [Jinping] on Friday. Our relationship remains very strong!" - the White House chief of staff told Truth Social.

In addition, he wrote: "An agreement was reached on a company that young people in our country really wanted to save," alluding to TikTok. The approaching deadline on the social network was one of the topics in the talks, in addition to the two countries' disagreement on import duties. TikTok faces a shutdown in the U.S. as early as Sept. 17 unless Chinese owner ByteDance agrees to sell it. U.S. Treasury Secretary Scott Bessent confirmed that a framework agreement on the social network has been reached, and it involves a shift to U.S. control, Reuters reports. US Trade Representative Jamison Greer clarified that the deadline may now be extended slightly to finalize the deal. At the same time, the U.S. is ready to implement the app ban if China does not give up its demands to reduce duties and ease technology restrictions, the agency notes.

At the same time as the talks were underway in Madrid, the regulator in Beijing accused Nvidia of violating antitrust laws and continuing its investigation of the chipmaker. The company's stock reacted with a 1.8% drop.

What else is driving the market

The growth of the Nasdaq Composite technology index was also supported by a rally in Tesla shares - they soared by 7% after Elon Musk bought the company's securities on the open market for about $1 billion for the first time since 2020. This was his largest purchase in history. The market saw the move as a signal of confidence in Tesla's future on the part of its CEO.

Stock indices were also affected by fresh data on slowing labor market and moderate inflation. This strengthened expectations that the Fed will cut the rate at the end of the next meeting on Wednesday, September 17, notes CNBC.

This article was AI-translated and verified by a human editor

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