Traders at the New York Stock Exchange. Yonhap News Agency/Reuters, New York. 

Optimism surrounding trade negotiations between the United States and China, ahead of a summit between the two countries' leaders, pushed all three major U.S. stock indices to record highs on October 27 (local time).

On this day, the Dow Jones Industrial Average closed at 47,544.59, up 337.47 points (0.71%) from the previous trading day.

The S&P 500 index closed at 6,875.16, up 83.47 points (1.23%) from the previous trading day, while the Nasdaq Composite index, centered on technology stocks, closed at 23,637.46, up 432.59 points (1.86%) from the previous trading day.

With this rise, all three major New York stock indices surpassed their all-time highs.

The Volatility Index (VIX) of the Chicago Board Options Exchange (CBOE), also known as the "fear index," closed at 15.74, down 0.63 points from the previous session around the close of the New York stock market, marking its lowest level in about a month since late September.

Earlier, delegations led by U.S. Treasury Secretary Scott Bessant and Chinese Vice Premier He Lifeng reached a preliminary agreement at high-level trade talks held in Kuala Lumpur, Malaysia, on October 25-26.

U.S. President Donald Trump, speaking to reporters aboard Air Force One en route to Tokyo from Malaysia, expressed an optimistic outlook on a final trade deal, stating, "I believe U.S.-China negotiations will reach an agreement."

With President Trump scheduled to meet with Chinese President Xi Jinping in South Korea during his attendance at the Asia-Pacific Economic Cooperation (APEC) summit, investors were optimistic that the U.S. and China would withdraw their additional tariff measures and rare earth export controls.

Major technology companies with relatively large exposure to China-related businesses, driven by expectations of easing U.S.-China tensions, led the index gains on this day.

Nvidia rose 2.81% and AMD rose 2.70%, while Tesla surged 4.30%. Alphabet (3.60%), Google's parent company, and Apple (2.25%) also saw significant gains.

Qualcomm jumped 11.09% today after announcing the upcoming release of its latest artificial intelligence (AI) chip to compete with Nvidia.

Major tech companies including Alphabet, Amazon, Apple, Meta, and Microsoft are scheduled to release their third-quarter earnings this week.

As the U.S. Federal Reserve (Fed) begins its two-day monetary policy meeting on October 28 to decide on the benchmark interest rate, the market expects the Fed to lower rates by 0.25 percentage points at this meeting.

"With five of the Magnificent Seven (M7) companies reporting earnings this week, the market is looking for confirmation that all this capital expenditure related to AI is being executed and that revenue and profits are being realized from AI," said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

Yonhap News Agency