Global stock markets rallied on Monday, while the dollar slid, as investors braced for a pivotal week marked by a tight U.S. presidential race, an anticipated Federal Reserve interest rate decision, and expected economic stimulus from China. Oil prices jumped 2.5% after eight OPEC+ producers extended supply cuts through next month, responding to demand concerns in the U.S. and China.

Major European and Asian markets mirrored Wall Street’s gains from the weekend, with traders anticipating key developments from the U.S. election, where Democratic Vice President Kamala Harris and Republican Donald Trump are running neck-and-neck. A recent Iowa poll showing Harris leading contributed to the dollar’s retreat, as a Trump victory could push the dollar higher due to his tax-cut and tariff policies.

Investors are also watching Senate and House races, as a potential Republican sweep could drive significant fiscal changes and impact bond yields. Meanwhile, the Federal Reserve is expected to announce a 25-basis-point rate cut following a 50-point reduction last month.

In China, policymakers are considering a substantial stimulus package, with economists projecting up to two trillion yuan ($280 billion) for local governments and banks. Both U.S. presidential candidates have pledged to adopt tougher stances on China, with Trump proposing a 60% tariff on all Chinese goods.

European markets saw gains, with London up 0.6% as the Bank of England is expected to lower rates on Thursday after a dip in inflation. Oil prices were further supported by recent warnings from Iran’s Ayatollah Ali Khamenei, who threatened retaliation against the U.S. and Israel following recent conflicts.