05:03 PM EDT, 09/15/2025 (MT Newswires) -- The Nasdaq Composite and the S&P 500 reached new peaks on Monday amid optimism around trade talks with China, ahead of the Federal Reserve's monetary policy decision later this week.

The Nasdaq Composite rose 0.9% to 22,348.8, notching an all-time closing high for a sixth consecutive session. The S&P 500 climbed 0.5% at 6,615.3, its first close above the 6,600 mark. The Dow Jones Industrial Average rose 0.1% to 45,883.5.

Among sectors, communication services paced the gainers, while consumer staples saw the biggest drop.

The US-China trade meeting in Spain went "very well," President Donald Trump said in a Monday social media post, adding that he will speak with his Chinese counterpart, Xi Jinping, on Friday.

"A deal was also reached on a 'certain' company that young people in our country very much wanted to save," Trump wrote, potentially referring to short-video app TikTok.

US and Chinese officials have reached a framework to switch TikTok to US-controlled ownership that will be confirmed during the upcoming Trump-Xi call, Reuters reported.

The latest US-China meeting marks the fourth round of negotiations in as many months to address strained trade relationships between the two global economic heavyweights, as well as TikTok's divestiture deadline, according to the report.

US Treasury yields were lower, with the 10-year rate decreasing three basis points to 4.04% and the two-year rate losing 1.5 basis points to 3.55%.

Markets widely expect the central bank's Federal Open Market Committee to lower its benchmark lending rate by 25 basis points following its two-day meeting on Wednesday, according to the CME FedWatch tool.

Markets will closely watch the updated dot plot and follow Fed Chair Jerome Powell's comments on further rate cuts, according to Macquarie.

"In June, the median dot implied 50 (basis points) of easing in 2025 and a further 25 bps of easing in 2026," Macquarie economists said in a note e-mailed to MT Newswires. "We see some risk of a dovish shift in projections, with the potential for the projection to show an additional 25 bps cut for 2026."

Morgan Stanley expects the FOMC to cut interest rates consecutively until January, saying this week's post-meeting policy guidance will likely signal an easing bias amid worries about the labor market.

Separately, Wells Fargo Investment Institute said that Fed officials are not committed to a single course of action.

"It seems that financial markets remain ahead of the Fed, as the market is pricing the federal funds rate in the range of (2.75% to 3%) by the end of 2026," Wells Fargo said. "In our view, this represents perhaps a bit too many rate cuts priced in given that the consensus on the macroeconomic landscape assumes that the US only goes through a soft patch."

In company news, Tesla (TSLA) shares were up 3.6%, among the top gainers on the S&P 500. A regulatory filing showed that Chief Executive Elon Musk bought roughly $1 billion worth of the electric vehicle manufacturer's shares in several transactions.

Tesla's board recently proposed a new compensation package potentially worth around $1 trillion for Musk.

Western Digital ( WDC ) was among the top S&P 500 gainers, up 4.8%, as Benchmark raised its price target on the data storage products maker's stock to $115 from $85.

Corteva ( CTVA ) shares were down 5.7%, the worst performer on the S&P 500. The company is exploring a split of its seed and pesticide businesses into two separate companies, The Wall Street Journal reported Friday, citing unnamed sources.

West Texas Intermediate crude oil was up 0.9% at $63.28 a barrel in Monday late-afternoon trade.

Gold was up 0.9% at $3,718.70 per troy ounce, while silver gained 0.8% to $43.19 per ounce.