01:35 PM EDT, 10/27/2025 (MT Newswires) -- US equity indexes broke records in midday trading on Monday as anticipation of a trade deal with China prompted investors to dial down the risk of a prolonged trade war between the world's two largest economies.

The Nasdaq Composite advanced 1.6% to 23,577.5, after hitting a record 23,596.6 earlier in the session. The S&P 500 advanced 0.9% to 6,854.5, also scaling a new peak of 6,861.36 intraday. The Dow Jones Industrial Average rose 0.4% to 47,386.5, posting an all-time high of 47,532.31 intraday.

Technology, communication services, and consumer discretionary were the top gainers intraday.

US President Trump and Chinese President Xi Jinping will meet on Thursday to finalize a potential trade deal framework. Both nations made progress in Malaysia, with China agreeing to ease rare earth export limits and buy large volumes of US soybeans in return for tariff relief. China's top negotiator, Li Chenggang, said that both sides had reached a preliminary consensus and would proceed with internal approvals before the leaders' meeting.

"I would describe [the negotiations] as constructive, far-reaching, in-depth, and giving us the ability to move forward and set the stage for the leaders' meeting in a very positive framework," US Treasury Secretary Scott Bessent was cited as saying in a Sunday research note from Wedbush Securities.

The CBOE Volatility Index dropped 2.4% to 15.98, down from about 25 earlier in the month when US-China trade tensions escalated as Trump threatened to impose an additional 100% tariff on Beijing in response to plans for rare earths export controls.

Bessent's comments are a "very bullish sign" for the markets and, in particular, technology stocks heading into the highly anticipated meeting, Daniel Ives, global head of technology at Wedbush, said. It would be a "game changer for the AI Revolution thesis if the US/China get to a more comprehensive trade deal, which would take the 'darker bear scenarios' off the table."

Most US Treasury yields traded higher, with the two-year yield up 2.1 basis points to 3.51%.

In company news, Qualcomm ( QCOM ) shares surged 13% intraday, leading the gainers on the S&P 500 and the Nasdaq, after the company unveiled chip-based accelerator cards and racks targeting the artificial intelligence semiconductor market.

Keurig Dr Pepper ( KDP ) shares jumped 7% intraday, the second-biggest return on the S&P 500 and the Nasdaq, after the company reported a year-over-year increase in Q3 adjusted earnings and net sales. The company also raised its full-year sales growth outlook and entered into two investment agreements totaling $7 billion.

Albemarle (ALB) reported that it agreed to sell a 51% stake in Ketjen's refining catalyst business to KPS Capital Partners and its 50% interest in the Eurecat joint venture to Axens, expecting to receive about $660 million in proceeds. Albemarle plans to use proceeds for debt reduction and general corporate purposes. Shares slumped 7% intraday, the worst performer in the S&P 500.