Wall Street indices hit new records on Monday after U.S. and Chinese officials eased tensions over the weekend, setting the stage for a potential trade agreement between U.S. President Donald Trump and Chinese President Xi Jinping later this week.

The Dow Jones Industrial Average rose 0.71% to close at 47,544.59 points, the Nasdaq Composite jumped 1.86% to 23,637.456 points, and the S&P 500 gained 1.23% to close at 6,875.16 points. All three major indices reached fresh intraday record highs during the session.

“I believe we have a very successful framework for the leaders’ talks on Thursday,” said Treasury Secretary Scott Bessent from the ASEAN Summit in Kuala Lumpur, Malaysia.

The framework reportedly includes the postponement of China’s export restrictions on rare earth minerals, which triggered the latest trade dispute, as well as the withdrawal of Trump’s proposed 100% tariffs on Chinese goods, which were set to take effect on November 1. It may also involve resuming Chinese purchases of American soybeans and resolving the dispute over TikTok, with the U.S. agreeing to a domestic version of the social media app.

“I have great respect for President Xi, and we will reach an agreement,” Trump said Monday aboard Air Force One.

Semiconductor manufacturers — the sector most exposed to trade tensions with China — led Monday’s rally. Nvidia gained more than 2%, while Broadcom rose over 1%. Tesla and Apple also climbed more than 5% and 1%, respectively, with the latter approaching a $4 trillion market capitalization.