From truce to triumph: How USstock market found its footing on Trump’s trade gambit
October’s crisp air brought not just a change in seasons but a fresh wind to Wall Street, where uncertainty had weighed hard on investors throughout the month. Thursday night saw traders hunched over their screens, reading headlines that President Trump and President Xi Jinping would soon meet in Asia, a move that could finally break a months-long deadlock between the world’s two largest economies. Investors, warily optimistic, knew just how much these talks could shape everything from tariffs and trade to the prices they paid for petrol and smartphones.
As the sun rose over New York, a sense of anticipation reverberated across trading floors. The S&P 500 sprang ahead by 0.58%, the Nasdaq lifted 0.89%, and the Dow gained 0.31%, a rally reversing the week’s early losses and recouping nerves battered by trade tension and inflation jitters.
Optimism takes centre stage as leaders prepare to meet
Big money bet on a better future, and the markets answered. As news of the Trump-Xi summit trickled in, analysts hailed it as a “reset moment” for global risk appetite. Jonathan Golub, Credit Suisse’s chief U.S. equity strategist, remarked, “When two presidents sit down, Wall Street pays attention. It’s not just a handshake, it’s the difference between recession fears and growth hopes.”
Corporate earnings only stoked optimism. Lending Club thrilled Wall Street after profits beat projections by nearly threefold, prompting major banks to revise forecasts upward. Quantum computing firms IonQ and Rigetti rocketed more than 12%, thanks to government interest in funding the next wave of tech, hinting that federal dollars could soon flow faster than ever before. Even utilities joined the charge, with W.R. Berkley and Welltower chalking up robust gains.
The story wasn’t all roses. Insurers like Molina Healthcare stumbled, diving 20.8% after slashing forecasts, reminding investors that risk didn’t disappear with one diplomatic overture.
Inflation concerns and fed signals: The balancing act
Among traders, eyes shifted quickly to today’s much-anticipated Consumer Price Index (CPI) report. Inflation’s stubborn climb, now to an annualised 3.1%, sparked nervous chatter. As Thomas Lee, managing partner at Fundstrat, put it, “If CPI surprises, the Fed moves. The market’s tuned to every decimal point.” He echoed a view shared by many: heightened consumer prices could push the Federal Reserve to cut rates sooner, lowering borrowing costs and keeping the risk-on party humming.
Expert commentary highlighted the delicate balance. Jerome Powell, Federal Reserve chair, warned in a Tuesday speech, “We’re steering through fog. Government data gaps mean we have to trust, but verify. We’re unlikely to take aggressive action unless inflation shows clear direction.”
With a mix of relief and hope, investors watched risk assets and cyclical stocks rally, oil prices surge amid fresh US sanctions, and Treasury yields dip, each twist a chapter in the ongoing story of recovery.
A week in which Wall Street clambered up from gloom to renewed optimism, driven not just by the promise of diplomacy but by clear-headed analysis and a readiness to seize opportunity. Markets may have started with uncertainty, but today’s action showed how quickly sentiment can swing, carrying portfolios and fortunes along for the ride.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Invest in 11,000+ US stocks & ETFs
October’s crisp air brought not just a change in seasons but a fresh wind to Wall Street, where uncertainty had weighed hard on investors throughout the month. Thursday night saw traders hunched over their screens, reading headlines that President Trump and President Xi Jinping would soon meet in Asia, a move that could finally break a months-long deadlock between the world’s two largest economies. Investors, warily optimistic, knew just how much these talks could shape everything from tariffs and trade to the prices they paid for petrol and smartphones.
As the sun rose over New York, a sense of anticipation reverberated across trading floors. The S&P 500 sprang ahead by 0.58%, the Nasdaq lifted 0.89%, and the Dow gained 0.31%, a rally reversing the week’s early losses and recouping nerves battered by trade tension and inflation jitters.
Optimism takes centre stage as leaders prepare to meet
Big money bet on a better future, and the markets answered. As news of the Trump-Xi summit trickled in, analysts hailed it as a “reset moment” for global risk appetite. Jonathan Golub, Credit Suisse’s chief U.S. equity strategist, remarked, “When two presidents sit down, Wall Street pays attention. It’s not just a handshake, it’s the difference between recession fears and growth hopes.”
Corporate earnings only stoked optimism. Lending Club thrilled Wall Street after profits beat projections by nearly threefold, prompting major banks to revise forecasts upward. Quantum computing firms IonQ and Rigetti rocketed more than 12%, thanks to government interest in funding the next wave of tech, hinting that federal dollars could soon flow faster than ever before. Even utilities joined the charge, with W.R. Berkley and Welltower chalking up robust gains.
The story wasn’t all roses. Insurers like Molina Healthcare stumbled, diving 20.8% after slashing forecasts, reminding investors that risk didn’t disappear with one diplomatic overture.
Inflation concerns and fed signals: The balancing act
Among traders, eyes shifted quickly to today’s much-anticipated Consumer Price Index (CPI) report. Inflation’s stubborn climb, now to an annualised 3.1%, sparked nervous chatter. As Thomas Lee, managing partner at Fundstrat, put it, “If CPI surprises, the Fed moves. The market’s tuned to every decimal point.” He echoed a view shared by many: heightened consumer prices could push the Federal Reserve to cut rates sooner, lowering borrowing costs and keeping the risk-on party humming.
Expert commentary highlighted the delicate balance. Jerome Powell, Federal Reserve chair, warned in a Tuesday speech, “We’re steering through fog. Government data gaps mean we have to trust, but verify. We’re unlikely to take aggressive action unless inflation shows clear direction.”
With a mix of relief and hope, investors watched risk assets and cyclical stocks rally, oil prices surge amid fresh US sanctions, and Treasury yields dip, each twist a chapter in the ongoing story of recovery.
A week in which Wall Street clambered up from gloom to renewed optimism, driven not just by the promise of diplomacy but by clear-headed analysis and a readiness to seize opportunity. Markets may have started with uncertainty, but today’s action showed how quickly sentiment can swing, carrying portfolios and fortunes along for the ride.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs