US indexes closed Monday at all-time highs as optimism over a potential Trump-Xi trade framework, a strong start to earnings season, and a burst of big M&A lifted sentiment. The risk-on tone extended globally, from Japan and South Korea to a 22% Argentina surge, while investors eye more Big Tech results and a widely expected Federal Reserve rate cut this week, even as skeptics flag signs of froth.

Goldman Sachs CEO David Solomon expressed confidence in the stability of the credit markets, stating that recent high-profile firm failures do not indicate a systemic risk. He emphasized that issues such as the collapse of First Brands Group and Tricolor Holdings are isolated incidents and do not reflect broader credit market instability. "I don't see anything in the context of a handful of bad credit situations that's leading me to say we have a systemic issue around the corner," Solomon said.

UBS has applied for a national bank charter to expand its US offerings, aiming to enhance services for wealth management clients by including payments, checking and savings accounts. The move is part of UBS' strategy to improve its US wealth management unit, which generates significant revenue but faces high expenses.

This weekend, SIFMA coordinated its 2025 Industry-Wide Business Continuity Test, bringing together over 90 firms, exchanges, and service providers to verify their ability to operate through adverse conditions. The annual exercise helps ensure the securities industry can withstand disruption, protect investors, and maintain confidence in US markets. "The successful test outcome underscores the ability of the securities industry to operate through adverse conditions," said Charles Desimone, Managing Director, Technology and Operations. In parallel, Regulation SCI entities completed coordinated testing to further strengthen operational preparedness.

President Donald Trump is preparing to announce his selection for Federal Reserve Chair, with a decision potentially coming before the end of the year. The process, led by Treasury Secretary Scott Bessent, involves a second round of interviews with five finalists, marking a more public and extensive vetting process than in previous chair selections.

The federal shutdown continues with little progress, as bipartisan frustration mounts over the lack of movement in Congress. Lawmakers like Sen. Lisa Murkowski are urging extended work hours to address the crisis, highlighting urgent issues such as the looming Supplemental Nutrition Assistance Program and Affordable Care Act deadlines. Despite some cross-party discussions, the Capitol remains in a stalemate, with both parties blaming each other for the impasse.

Industry groups have voiced support for the SEC's approval of the Municipal Securities Rulemaking Board's proposed four-year rate card, but have urged further adjustments to its fee structure. In a letter sent to the SEC, SIFMA recommends implementing a market activity-based fee on municipal advisors for competitively sold new issues and continuing to raise municipal advisor fees, which currently account for only 8% of the MSRB's budget.