US Stock Market: Nasdaq Rallies 600 Pts, Dow Jones Soars 370 Pts, S&P 500 Gains 1.5% Ahead Of Trump-XI Meeting

The US stock market rallied strong in the start of the week just as investors prepare for a showdown between President Donald Trump and China's President Xi Jinping who will meet later this week to discuss trade deals, AI progression, Iran conflict and critical minerals deal among others. The Dow Jones rallied nearly 370 points overnight, while S&P 500 gained almost 115 points but Nasdaq Composite index outperformed with nearly 600 points surge driven by tech stocks. On Tuesday, the US stock futures traded cautiously as crude oil prices and treasury yields pickup momentum.

Dow Jones + Nasdaq + S&P 500

Overnight, the Dow Jones Industrial Average or DJIA gained by 366.19 points or 0.71% to end at 52,048.83. While the S&P 500 index soared by 114.20 points or 1.49% to end at 7,764.70. But the tech-heavy, Nasdaq outperformed with 599.55 points or 2.3% gains to close at 27,122.09.

Explaining the reason for bulls on Wall Street, Charles Schwab's note said, stocks rose on Monday as oil prices and Treasury yields fell, a positive start to a week with minimal economic data and earnings reports due. Chipmakers rose as the AI trade appeared to regain its footing.

Among individual stocks, Meta skyrocketed by 11.3% on optimism surrounding its AI offering, Muse. Further, semiconductor stocks also rallied with AMD and Intel climbing by 10% and 12%, respectively.

US Stock Futures Tuesday, September 22, 2026

In the early hours of Tuesday, the Dow Jones futures traded mildly lower by 52.40 points or 0.10% to 51,997.90. On the other hand, the Nasdaq 100 futures gained by 111.50 points or 0.4% to trade at 30,894.50. Additionally, the S&P 500 futures traded broadly flat at 7,834.75.

Investors now await fresh earnings reports from AutoZone and KB Home on Tuesday, along with speeches from Federal Reserve officials, as per Trading Economics.

US Stock Market Outlook Ahead

As per Schwab, it's a relatively quiet week for data and earnings but a busy one for Federal Reserve speakers. A host of them are scheduled, possibly shedding more light and providing nuance on last week's rate hike, the first in more than three years.

Another highlight ahead is a meeting between President Trump and Chinese President Xi this Thursday. It could put trade back on the menu for the first time in a while, possibly including some tariff reductions, Reuters reported.

Furthermore, Schwab's note said, volatility has been low despite recent market weakness. That could change this week as position shifting occurs before the end of the quarter in what's traditionally called "window dressing" season. This is when fund managers shift in and out of stocks near the end of the quarter before sending quarterly reports to clients. They tend to move into stocks that did well during the quarter and shed positions that lost ground.

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