04:48 PM EDT, 10/27/2025 (MT Newswires) -- US equity indexes broke records on Monday as a potential trade deal with China prompted investors to dial down the risk of a prolonged trade war, helping lift the so-called Mag-7 stocks ahead of earnings.

The Nasdaq Composite surged 1.9% to about 23,637.46 at the close, after hitting a record of 23,658.66 earlier in the session. The S&P 500 jumped 1.2% to 6,875.16, also scaling a new peak of 6,877.28 intraday. The Dow Jones Industrial Average rose 0.7% to 47,544.59, posting an all-time high of 47,564.52 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 3.5% to 15.79, 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 research 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."

Gold futures dropped 3% to $4,012.21, and silver futures plunged 3.6% to $46.82 as haven demand slid in Monday's risk-on environment.

US Treasury yields traded mixed, with the two-year yield up 1.7 basis points to 3.5% and the 10-year rate slipping by almost one basis point to 3.99%.

Technology, communication services, and consumer discretionary sectors led the gainers on Monday.

All Mag-7 stocks rose more than 1% each, with Tesla (TSLA) leading the pack. Tesla Chair Robyn Denholm urged company shareholders in a letter on Monday to support the proposed $1 trillion compensation package for Chief Executive Elon Musk.

Five Mag-7 members with a significant weight across the three mainstream equity market indexes -- Microsoft ( MSFT ) , Meta Platforms ( META ) , Alphabet (GOOGL, GOOG), Apple ( AAPL ) , and Amazon ( AMZN ) -- will report quarterly earnings this week. Tesla reported its results last week.

In company news, Qualcomm ( QCOM ) shares surged 11%, 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 7.6%, 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 8.9%, the worst performer in the S&P 500.