U.S.-China Trade Deal Hopes Propel Stocks to All-Time Highs 10/27/25

SPEAKER_1 (0:00)

Introducing Fidelity Trader Plus, the next generation of advanced trading from Fidelity. Customize your tools and charts, and access them seamlessly across desktop, web and mobile. For faster trades, anywhere you go. Try the all new Fidelity Trader Plus. Learn more about our most powerful trading platform yet at fidelity.com/traderplus. Investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC. Member NYSE, SIPC.

SPEAKER_2 (0:31)

Huge savings on Dell AI PCs with Intel Core Ultra processors are here. And they are newly designed to help you do more faster. They can generate code, edit images, multitask without lag, draft emails, summarize documents, create live translations, and even extend your battery life. That's the power of Dell AI with Intel inside. Upgrade today by visiting dell.com/aidashpc.

David Faber (1:00)

Market Insight and Analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (1:06)

Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Coming up Friday's all time high, stocks setting up for possible Fed cut this week, a third of the S&P reporting earnings, and a China trade framework that if not a breakthrough, sure feels de-escalatory. Ten year 402, a road map begins with the president in Asia saying the US and China are close to a trade deal ahead of talks with Xi this week.

David Faber (1:31)

It is a merger Monday. We've got some big deals in banking, health care, utilities, water. We're going to break all of them down. And of course, get ready for what is going to be the busiest week of earnings season. We've got Apple, Meta, Microsoft, Amazon, Alphabet. That's a lot of market cap right there, all getting ready to report.

Carl Quintanilla (1:52)

Let's begin with this market optimism amid hopes for a U.S.-China trade deal. Both sides agreeing to a framework ahead of talks between the president and Xi later this week. Yesterday on Meet the Press, the Treasury Secretary said he expects a delay on Beijing's rare earth export curbs. Take a listen.

SPEAKER_5 (2:10)

I'm also anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed. Again, this will all be, you know, we, the, my, my counterpart, the Vice Premier and I have set the framework and it will be up to the two leaders to discuss the final terms.

Carl Quintanilla (2:36)

Meantime, Jim, there's, there's soybeans, there's fentanyl, there's TikTok, lots of gets done here.

Jim Cramer (2:40)

I can't believe how wide ranging this is. Obviously Treasury Secretary Besson is, I continue to think he surprises everybody. I don't think of him as a Republican or a Democrat. I just think of him as one of the most knowledgeable people I've come across. He's a soybean farmer too. There's nothing this guy can do.

David Faber (2:53)

But he leases land to soybean farmers. I don't think he's out there actually farming.

Jim Cramer (2:58)

I've got three cows. You know, people call me a cattleman.

David Faber (3:02)

Nobody calls you a cattleman, no?

Jim Cramer (3:04)

Okay.

David Faber (3:05)

We'll talk plenty about him later. But yeah, you are a gardener, though. I will give you that.

Carl Quintanilla (3:08)

Your tomatoes are out of control.

Jim Cramer (3:10)

That is for real. I had 100 jars.

David Faber (3:12)

Nobody gardens better in a suit and tie than you.

Jim Cramer (3:14)

You know, it's good that 902, we got right to it.

David Faber (3:16)

All right, you want to get back to China, Trey? Let me finish.

Jim Cramer (3:20)

Sure, scatterbill. Ouch. We actually clapped for him.

Carl Quintanilla (3:24)

We're rooting for him.

Jim Cramer (3:26)

We demonstrated some generosity. Can I just say that you go into these... Stop it. You go into this kind of talk, and you do expect some sort of glitch, and you come out, and it just sounds like everything, that every stock, everything, that anybody loaned a stock, wins. David, this is highly unusual.

David Faber (3:47)

It could be highly unusual. We're obviously seeing the response in the futures. We'll see how we open 27 minutes or so from now. But there's a lot at stake in China trade. And you just said it, across the board, so many different things, whether it be soybean sales, which, of course, none are being sold to China right now by US farmers, TikTok, which has already been done, but we haven't really revisited that deal and the specifics of it. And they still need to give the full permission for the algorithm because it's going to be licensed for a while while it's being recreated. And on and on from there, rare earths, obviously, probably the most important part of it, Jim, because it can bring a number of different industries to not quite a standstill, but slow them down a lot.