The major averages rally to start the week ahead of a Fed rate cut and positive develops from U.S.-China trade negotiations. The Dow Jones Industrial Average rose 49 points. The S&P 500 rose 30 points while the Nasdaq rose 207 points or 0.94%

U.S. and Chinese officials met in Europe to discuss tariff rates and a sale of Chinese-owned social media TikTok. On a separate note, China’s market regulator said Nvidia violated the country’s anti-monopoly law and that it would continue its probe into the chipmaker. Nvidia’s stock was modestly lower.

The rest of the tech sector had a good day. Google jumped 4% becoming a three trillion-dollar company for the first time.  Tesla also had a good day, jumping 3% after CEO Elon Musk disclosed an insider purchase of the stock worth about $1 billion, his largest buy in the open market ever and his first significant purchase since 2020.

The other big news this week will be if and or how much the Fed will cut rates this week. Last week, the economic data showed a weakening labor market and tame inflation spurred hopes the Fed will cut interest rates when it concludes its meeting on Wednesday. The market was last pricing in a 95.8% certainty that the central bank will lower interest rates by aat least a quarter percentage point according to the CME FedWatch Tool. The yield on the benchmark 10-year Treasury dropped 2.4 basis points to 4.03%. The yield on the 2-year Treasury fell 2 basis points to 3.53%, while the 30-year Treasury declined 2 basis points to 4.65%.

In the commodity space, oil was higher by a percent on more attacks on Russian oil. Gold was up a percent while the crypto-currencies were lower.

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