Stock Market Rallies on Tech Recovery and US-China Trade Optimism
The S&P 500 and Nasdaq 100 surged on Monday as Wall Street firms projected bullish outlooks for 2026, fueled by a rebound in tech stocks. Giants like Google, Broadcom, Palantir, and Tesla each gained over 5%. The rally coincided with a phone call between former President TRUMP and Chinese President Xi Jinping, where Trump emphasized the "extremely strong" bilateral relationship—a sentiment echoed by Chinese state media.
Deutsche Bank raised its 2026 S&P 500 target to a record 8,000, citing lower interest rates and reduced trade tensions. HSBC followed with a 7,500 forecast. The Trump-Xi discussion marked their first dialogue since meetings in Busan, resulting in a U.S. tariff cut to 47% from 57% and pledges from China to boost American imports.
