US stocks hit new highs as trade talks unfolded in Madrid, with the S&P 500 closing above 6,600 for the first time. The Nasdaq Composite notched its sixth consecutive record close, while the Dow Jones edged up. Investors await the Federal Reserve meeting this week with a 96% chance of a rate reduction.

Major US stock indexes are coming off a strong week, with the Nasdaq and S&P 500 seeing their best showings since August. The Dow broke a two-week losing streak. Investors are eager for the Federal Reserve’s policy meeting, pricing in a 96% chance of a quarter-point rate reduction.

Investors are looking forward to a potential rate cut at the Federal Reserve’s meeting, with a 96% chance of a 25 basis point reduction. Traders are also monitoring AI chipmaker Nvidia after China’s preliminary probe found antitrust violations. Tesla stock surged 3% after CEO Elon Musk purchased $1 billion in shares.

US and Chinese officials met for high-stakes trade talks in Madrid, discussing tariffs and TikTok amid their ongoing trade war. Treasury Secretary Scott Bessent said the countries agreed on a framework for a TikTok deal ahead of a US ban set to go into effect. Oracle’s stock jumped on news of the potential deal.

Gold prices surged nearly 1% to all-time highs as the US dollar eased ahead of the Federal Reserve’s decision. Futures rose above $3,700 per troy ounce as investors anticipate a rate cut this week. Lower rates make gold more attractive, contributing to its 40% year-to-date gain.

Bitcoin hovered above $115,500 after its biggest gain in two months. The cryptocurrency is up roughly 23% year-to-date. Ethereum fell more than 1%, while Solana sank 4% and XRP remained stable. Altcoins are expected to catch up in a seasonally weak September for Bitcoin.

Read more at Yahoo Finance: S&P 500 tops 6,600, Nasdaq extends record streak as Fed decision nears