Global equities rally as Trump-Xi optimism lifts market sentiments

• S&P 500 rose 0.77% to surpass 7,500 for the first time ever; Nasdaq gained 0.88% to a fresh record as US investment-grade spreads tightened to 3-month lows
• Nvidia surged 4.39% leading the 'Magnificent 7' higher (+0.49%), while European markets also advanced with Italy's FTSE MIB reaching its highest level since 2000 (+1.15%)
• Asian markets diverged sharply: South Korea's KOSPI plunged 3.66% and Japan's Nikkei fell 1.16%, while mainland China showed resilience with the CSI 300 and Shanghai Composite posting modest gains

Summary

Market Performance:

Global equities rallied strongly on May 15, 2026, driven by optimism surrounding US-China relations and easing inflation concerns. The S&P 500 crossed 7,500 for the first time, gaining 0.77%, while the Nasdaq Composite rose 0.88% to a fresh record high. US investment-grade spreads tightened to their narrowest levels in three months.

Key Drivers:

Positive sentiment stemmed from the Trump-Xi summit in Beijing, encouraging US economic data, and sustained enthusiasm for artificial intelligence investments. The public debut of Cerebras Systems further amplified AI-sector optimism.

Sector Leaders:

Technology and AI-related stocks led gains. Among the "Magnificent 7," Nvidia surged 4.39%, while the broader group climbed 0.49%. Cisco was also highlighted as benefiting from the positive momentum.

Regional Performance:

European markets participated in the rally, with the STOXX 600 advancing 0.76% and Italy's FTSE MIB jumping 1.15% to its highest level since 2000.

Asian markets showed mixed results. Japan's Nikkei fell 1.16%, South Korea's KOSPI plunged 3.66%, and Hong Kong's Hang Seng dropped 0.95%. However, mainland Chinese markets demonstrated relative strength, with the CSI 300 up 0.04% and the Shanghai Composite gaining 0.12%.

Market Implications:

The rally reflects renewed risk appetite driven by geopolitical progress and robust corporate earnings. Technology sector strength, particularly AI-focused companies, continues to dominate investor sentiment. The divergence between Western markets and certain Asian indices suggests regional concerns persist despite improved US-China relations.