Stock markets hit record highs Wednesday thanks to optimism over US trade deals, the AI sector and an expected interest-rate cut by the US Federal Reserve.

The Dow briefly topped 48,000 points as all three of Wall Street's main indices set record highs when trading started, following fresh peaks set in London and some Asian markets as US President Donald Trump voiced optimism on the eve of crunch talks with China's President Xi Jinping.

Investors are looking ahead to a meeting of the Federal Reserve, which observers expect will unveil a quarter-percentage-point cut to borrowing costs, as well as earnings reports from tech giants Meta, Microsoft and Google-parent Alphabet after trading closes in New York.

"Sentiment is as bullish as it can be heading into what could be one of the most co

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