Stock futures jumped on Monday after 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. Dow Jones Industrial Average futures added 219 points, or 0.5%. S&P 500 futures climbed 0.8% and Nasdaq 100 futures were up 1.3%, with chip stocks like Nvidia leading the way in early trading. “I think we have a very successful framework for the leaders to discuss on Thursday,” said Treasury Secretary Scott Bessent from the ASEAN Summit in Kuala Lumpur. The framework potentially includes a delay of China’s rare earths restrictions that caused the latest trade flare-up, a spiking of Trump’s threatened 100% tariffs on China that were to start Nov. 1 and a resumption of Chinese purchases of soybeans. The agreement may include a resolution of the TikTok dispute with the U.S. getting a deal for the U.S. version of the social video app. “I have a lot of respect for President Xi, and we are going to come away with the deal,” Trump said on Monday from Air Force One. Chipmakers, the sector with the most to lose from tensions with China, led the rally in early trading Monday. Nvidia as well as Broadcom and AMD all gained about 2%. Tesla and Apple added around 1% each. “Details are still limited, and nothing will be finalized until the Trump-Xi meeting, but a renewed truce now seems near-certain, with China likely fully delaying their rare earth export controls for a year—better than the alternative of an agreement to grant licenses,” said Tobin Marcus of Wolf Research in a note. “This overall better-than-expected outcome should be bullish for markets this week, assuming the Trump-Xi meeting goes well.” Stocks are coming off a bullish week, with all three major indices hitting record highs last Friday. The Dow Jones Industrial Average posted its first-ever close above the 47,000 mark. The S&P 500 touched 6,800 for the first time ever Friday. All three major benchmarks posted their second week in a row of gains. Investors expect the Federal Reserve to slash rates on Wednesday, particularly after the Bureau of Labor Statistics released slightly cooler-than-expected inflation data last week. Big Tech companies’ upcoming earnings reports are also on tap. Several “Magnificent 7” stocks, including Alphabet, Amazon, Apple, Meta Platforms and Microsoft, will release their third-quarter results this week. While investors were encouraged by improving China-U.S. relations, a setback with Canada kept their enthusiasm in check. Trump on Saturday put an additional 10% tariff on Canada imports for not pulling a TV ad featuring former President Ronald Reagan knocking tariffs fast enough. U.S. Treasury yields moved higher on Monday as investors looked ahead to the Federal Reserve’s meeting this week where policymakers are widely expected to cut interest rates. The 10-year Treasury yield was up more than 2 basis points to 4.018%, while the 2-year Treasury note yield was more than 1 basis point higher at 3.497%. The 30-year bond yield also gained more than 1 basis point to 4.603%. Japan’s Nikkei 225 breached the 50,000 mark for the first time Monday as investors cheered progress in U.S.-China trade talks and strong momentum from Wall Street. The benchmark index rose 2.46% to close at 50,512.32, while the Topix added 1.7% to end the trading day at 3,325.05. Across Asia, South Korea’s Kospi jumped 2.57% to close at 4,042.83, crossing the 4,000 for the first time after hitting a record high on Friday, while the small-cap Kosdaq added 2.22% to end the trading day at 902.7. Hong Kong’s Hang Seng Index rose 1.05% to end the trading day at 26,433.7, while the mainland CSI 300 rose 0.83%. Australia’s ASX/S&P 200 was up 0.41%, closing at 9,055.6. Oil prices fell on Monday, pressured by skepticism that a U.S. and Chinese trade deal framework would immediately boost oil demand and after Iraq’s oil minister confirmed an oilfield fire had not affected the OPEC member’s oil exports. Brent crude futures were down 32 cents, or nearly 0.5%, to $65.62 a barrel at 1015 GMT. U.S. West Texas Intermediate crude futures were down 30 cents, also about 0.5%, to $61.20. Gold prices fell nearly 2% Monday, as hopes of easing U.S.-China trade tensions lifted risk appetite for equities, while investors awaited major central bank meetings this week for rate cut cues. Spot gold was down 1.3% at $4,059.22 per ounce as of 0837 GMT. Prices hit a record high of $4,381.21 on October 20, buoyed by rising bets for U.S. rate cuts, and geopolitical and economic uncertainties, but have since fallen more than 5%. U.S. gold futures for December delivery lost 1.6% to $4,072.40.