U.S.–China Trade Progress Could Push S&P 500 to New High

​The S&P 500 could soon hit a fresh all-time high as markets gain confidence in improving U.S.–China relations and easing trade tensions.

Following a new round of trade talks in London, analysts say the mood is cautiously optimistic. U.S. negotiators, led by Treasury Secretary Scott Bessent, met with Chinese Vice Premier He Lifeng to push for concessions on rare earth exports and other key supply chain issues. According to officials, both sides are showing a willingness to cooperate—with China offering early signs of flexibility and the U.S. potentially relaxing certain export restrictions in return.

President Trump described receiving “good reports” from the talks, further boosting investor sentiment. The S&P 500, already within 2% of its February peak, inched up 0.09% Monday, and strategists at JPMorgan believe several upcoming events could act as catalysts to push the index into record territory.

Meanwhile, Asia-Pacific markets were also on the rise. South Korea’s Kospi index gained 0.38%, as local analysts predicted a broader bull market fueled by fiscal stimulus from the new government.

Elsewhere, tech remained in focus after Apple’s Worldwide Developers Conference, where the company unveiled a visual overhaul to iOS called “Liquid Glass.” However, with no major AI news, Apple shares dipped 1.2%.

Bottom line: Positive signals from U.S.–China trade talks, easing tensions over rare earth exports, and broader investor confidence are giving stocks room to run. If progress continues, the S&P 500 could break out to new highs sooner rather than later.