Apple, Alphabet and other tech favorites propelled Wall Street to record highs on Monday, fuelled by optimism about the signing of a preliminary US-China trade deal, as well as upcoming fourth-quarter earnings reports. Apple, Facebook Inc, Netflix Inc, Microsoft Corp and Inc, which have powered the longest bull run in US equities, were among the top contributors to record high closes for the S&P 500 and Nasdaq.

Apple rose 2.14 per cent to close at a record high. Also reaching a record high, Google-owner Alphabet Inc added 0.8 per cent, bringing its market capitalization to $993 billion.

An easing of Middle East tensions and the phase one US-China trade agreement, which is expected to be signed in Washington on Wednesday, have encouraged riskier bets over the last week. Bloomberg, citing sources, reported that the Trump administration planned to lift its designation of China as a currency manipulator, adding to the positive mood.

Investors are awaiting earnings from big banks JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co, which kick off the fourth-quarter reporting season from Tuesday. Analysts expect profits at S&P 500 companies to drop 0.6 per cent for a second consecutive quarter, according to Refinitiv IBES data. Many investors, however, are already looking ahead to a potentially rosier earnings outlook once Washington and China resolve their trade dispute.

The Dow Jones Industrial Average rose 0.29 per cent to end at 28,907.05, while the S&P 500 gained 0.70 per cent to 3288.13, its highest close ever.


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