The major averages continued the rally to start the week as the U.S. and China officials cooled tensions over the weekend, laying the groundwork for President Donald Trump and China President Xi Jinping to clinch a trade deal this week. The Dow Jones Industrial Average jumped 337 points, or 0.71% to 47,544. The S&P 500 climbed 83 points or 1.23% while the Nasdaq Composite rose 432 points or 1.86% to 23,637 thank so the chip sector once again. All three of the major averages closed at record highs, along with the Russell 2000

The framework potentially includes a delay of China’s rare earth export restrictions that caused the latest trade flare-up, the withdrawal of Trump’s threatened 100% tariffs on China that were set to start Nov. 1 and a resumption of Chinese purchases of American soybeans. The agreement may also include a resolution of the TikTok dispute, with the U.S. getting a deal for the domestic version of the social video app.

Interest rates were quiet today as the Fed meets this week to possibly lower rates once again. The 10-year Treasury yield was unchanged at 3.99%. The 2-year Treasury rose a basis point to 3.50%. The 30-year bond yield fell 2 basis points to 4.56%.

In the commodity space, oil was quiet as OPEC plans to increase production to possibly cover and supply constraints from Russia. Gold was lower as US China trade tensions ease the rush to safe haven investments. Crypto currencies rose a percent today and several percent over the weekend as the risk on trade was back on.

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