S&P500: Qualcomm Pops 18% on AI Push, Fueling Broader Tech Stock Rally Today

S&P 500 Breaks Higher as Trade Truce Hopes Fuel Rally

U.S. Stocks ripped to new records Monday, with the S&P 500 up 1% and eyeing its first-ever close above 6,800. Traders jumped back in after signs emerged that the U.S. and China may be heading toward a trade deal, cooling tensions that have weighed on markets for weeks.

Is a U.S.-China Trade Agreement Finally Within Reach?

Over the weekend, officials from both sides signaled progress on a potential framework for a deal, paving the way for a meeting between President Trump and China’s President Xi Jinping later this week.

Key points include China delaying rare earth export restrictions, the U.S. pulling back from a planned 100% tariff hike, and Beijing resuming purchases of American soybeans.

“We have a very successful framework for the leaders to discuss on Thursday,” Treasury Secretary Scott Bessent said from the ASEAN Summit in Kuala Lumpur. Trump himself struck an optimistic tone, stating from Air Force One, “We are going to come away with the deal.”

The agreement may also include resolution on TikTok, with a deal potentially giving the U.S. a domestic version of the app.

Tech Leads as Chipmakers Catch a Bid

The Nasdaq jumped 1.7% as chip stocks took the spotlight. Nvidia rose more than 2%, Broadcom added over 1%, and Qualcomm surged 18% after announcing a new AI chip line aimed at challenging Nvidia and AMD in data centers. Qualcomm’s move into the inference market marked a strategic shift — and traders rewarded it fast.

Tesla also ripped over 5%, and Apple gained more than 1%, pushing closer to a $4 trillion market cap. The tech sector led with a 1.6% gain, lifting the broader rally.

Which Sectors Are Driving the Action — and Which Are Lagging?

Communication services (+1.9%) and consumer discretionary (+1.8%) kept pace with tech. Industrials, financials, and energy moved modestly higher. But materials, consumer staples, and health care lagged, with names like Albemarle (-7.3%) and Newmont (-6.4%) weighing on the tape.

Other standouts included Keurig Dr Pepper (+7%), and Coinbase (+4%). On the flip side, Ford fell over 4% and Western Digital dropped more than 3%.

What’s on the Radar for Traders This Week?

Earnings from the biggest tech names hit this week — Alphabet, Amazon, Apple, Meta, and Microsoft — giving traders plenty to digest. Also on deck is the Fed decision Wednesday. After last week’s cooler inflation data, expectations are rising for a rate cut. A dovish pivot plus trade progress could keep bulls in control.

Bottom line: Traders are leaning long — for now. But with the Fed and mega-cap earnings both on the schedule, no one’s taking their hand off the trigger.

More Information in our Economic Calendar.