US stocks jump on optimism over rate cut, US-China talks

New York, Sept 15, 2025 (AFP)
Wall Street stocks mostly advanced early Monday, bolstered by hopes that the Federal Reserve will soon make its first interest rate cut of 2025 and positive signals at the end of US-China economic talks in Madrid.
The Dow Jones Industrial Average was flat at 45,847.77, while the broad-based S&P 500 Index climbed 0.3 percent to 6,606.32.
The Nasdaq Composite Index added 0.6 percent to 22,262.05.
"What's pushing up the market is, first off, the continued optimism that the Fed will be cutting rates on Wednesday," said Sam Stovall of CFRA Research.
The US central bank is due to hold a two-day policy meeting from Tuesday to Wednesday, and traders widely expect it to opt for a 25 basis points rate cut as the employment market deteriorates.
Stovall predicts the market will "creep higher until Wednesday afternoon," calling it a "foregone conclusion" that the Fed will lower rates.
Investors will also be monitoring Fed Chair Jerome Powell's comments at his press briefing Wednesday after the rate announcement, for hints on the number and pace of reductions to come.
Markets were also boosted Monday by US Treasury Secretary Scott Bessent's comments that Washington and Beijing have reached a framework deal on TikTok.
Bessent's remarks, made after officials from the world's two biggest economies held talks in Madrid, come ahead of a deadline for the popular app to find a non-Chinese buyer or face a ban.
Trump also wrote on his Truth Social platform Monday that he will be speaking to Chinese leader Xi Jinping on Friday, stressing that US-China ties remain "very strong."
Among individual companies, Tesla shares jumped around 6.0 percent in early trading after its boss Elon Musk disclosed his purchase of around $1 billion in shares of the electric vehicle company.

Sumber : AFP