Stock futures are poised for a significant increase this morning after major indices closed last week at record highs. Investor confidence is gaining momentum following President Donald Trump’s optimistic remarks about potential trade agreements with China and the ongoing discussions regarding the ownership of the social media app TikTok. Additionally, shares of Avidity Biosciences have surged after Novartis, the Swiss pharmaceutical giant, announced plans to acquire the biotechnology firm. Meanwhile, stocks linked to Argentine companies are experiencing a boost after President Javier Milei’s political party achieved notable victories in recent legislative elections.
Major stock indexes are set to open higher amidst growing optimism about a possible easing of trade tensions between the U.S. and China. Investors are also preparing for an anticipated interest rate cut by the Federal Reserve and a series of earnings reports from leading technology companies later in the week. The three primary U.S. stock indices are entering today’s session at record highs, each gaining around 2% last week following a recent inflation report that reinforced expectations for an imminent rate cut on Wednesday. Futures tied to the Dow Jones Industrial Average have risen by 0.5%, while those for the S&P 500 and Nasdaq have increased by 0.9% and 1.3%, respectively. Bitcoin has risen to approximately $115,400, ending the weekend from a low of around $111,000. In contrast, gold futures have fallen by 2.6% to set at $4,030 per ounce, retreating from previous highs. The yield on the 10-year Treasury note has increased to 4.02%, while crude oil futures have dipped slightly to around $61.40 after experiencing a surge last week due to new U.S. sanctions on Russian oil firms.
President Trump expressed optimism regarding the possibility of a trade deal with China as he prepares for a meeting with Chinese President Xi Jinping on Thursday in South Korea. Trump stated, “I have a lot of respect for President Xi, and we are going to come away with the deal.” Reports suggest that U.S. and Chinese negotiators reached a framework for a trade deal over the weekend, potentially leading to a reduction in tariffs and trade barriers. The deal is expected to delay the implementation of previously announced 100% tariffs on Chinese imports, scheduled for November 1, while China’s export controls on rare earth elements may also be postponed. Trump is also hopeful about achieving an agreement on TikTok’s ownership. Additionally, the U.S. has established separate trade agreements with Malaysia and Cambodia, along with frameworks with Thailand and Vietnam. In premarket trading, shares of chipmakers Nvidia and Advanced Micro Devices have each seen over a 2% increase as they seek to expand in Chinese markets.
In a separate turn of events, Trump announced an additional 10% tariff on Canadian goods following a controversial ad from the Ontario provincial government that criticized U.S. tariffs. The ad featured former President Ronald Reagan and has been described by Trump as a “serious misrepresentation of the facts.” This move follows Trump’s earlier imposition of a 35% tariff on Canadian goods not covered by the USMCA agreement, as well as higher levies on specific products like steel and aluminum.
Meanwhile, shares of Avidity Biosciences are soaring in premarket trading after Novartis revealed plans to acquire the biotech firm for $12 billion. As part of the acquisition process, Avidity will divest a portion of its early-stage precision cardiology business before completing the deal in the first half of 2026. Novartis CEO Vas Narasimhan praised Avidity’s advancements in RNA therapeutics and expressed eagerness to further develop these programs for patient benefit. Following the news, Avidity’s shares surged more than 40%, while Novartis experienced a slight drop of about 1%.
In Argentina, U.S.-listed shares have spiked following President Milei’s La Libertad Avanza party’s electoral triumph. Trump has offered potential financial support for the country, contingent on the election outcome. On social media, Trump celebrated the victory, highlighting Milei as a “wonderful Trump Endorsed Candidate.” In premarket trading, shares of financial services companies such as Grupo Financiero Galicia SA, Banco BBVA Argentina SA, and Banco Macro SA each saw gains exceeding 30%. Oil company YPF’s shares rose by approximately 25%, while e-commerce platform MercadoLibre experienced a 7% increase.
