Major indices in New York rose, with the Dow, S&P 500 and Nasdaq all closing at records on the improved sentiment on China-U.S. trade talks

U.S. stocks closed at new records again on Monday over optimism that the China-U.S. trade war was about to ease, with a possible deal in view when presidents Donald Trump and Xi Jinping meet later this week.

Major indices in New York rose, with the Dow, S&P 500 and Nasdaq all closing at records on the improved sentiment on trade talks. Monday’s buoyant session also featured heady gains by Microsoft, Facebook parent Meta and other tech giants ahead of earnings later this week.

Overall, the positive sentiment was buoyed by weekend chatter suggesting that Washington and Beijing may finally be finding some common ground and pulling back from painful tit-for-tat trade measures, said Fawad Razaqzada, market analyst at Forex.com.

All eyes now turn to Thursday’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping, which could see these tentative understandings formalized, he said.

Trump said he was hopeful of a deal when he sees Xi Thursday, while also indicating he was willing to extend his trip to meet North Korean leader Kim Jong Un.

China’s vice commerce minister, Li Chenggang, said a “preliminary consensus” had been reached.

The progress paves the way for Trump and Xi to meet Thursday in South Korea on the sidelines of the Asia-Pacific Economic Cooperation summit.

Chinese stock indices closed up more than 1% Monday.

There was a strong finish Friday on U.S. stock indexes, after benign inflation data set the stage for a central bank interest-rate cut on Wednesday, despite a lack of clarity over the health of the country’s economy as a government shutdown churns on.

On Thursday, the European Central Bank is expected to hold borrowing costs steady for its third straight meeting, with eurozone inflation largely under control.