U.S. Stocks Rally on Easing Trade Tensions

U.S. stocks rallied strongly on Monday, with the S&P 500 gaining 1.56% and the NASDAQ 100 surging 2.18%—their best session since May—partially recovering Friday’s steep losses.

The advance followed President Trump’s softer stance on China tariffs, which eased trade war concerns.

Technology and semiconductor stocks led the rebound, with Broadcom soaring nearly 10% on an OpenAI partnership announcement and the Philadelphia Semiconductor Index jumping 4.9%. AMD, Nvidia, and Micron also recovered sharply from tariff-related declines.

The dollar remained stable on Tuesday as Trump’s conciliatory tone on Truth Social on Sunday raised hopes for de-escalation. U.S. stock futures showed little change Monday evening after the session’s solid gains.

Gold hit a record above $4,157/oz (up 13% monthly, 55% yearly) while silver reached $52.70/oz (up 23% monthly, 67% yearly), driven by safe-haven demand amid geopolitical uncertainty and anticipated Fed rate cuts.

Bitcoin recovered above $114,000 after weekend liquidations totalling $19 billion pushed it below $105,000, with institutional buyers like MicroStrategy aggressively accumulating.

Oil prices rose on Tuesday on improving U.S.-China sentiment, alleviating global demand concerns.

Trading occurred amid sparse U.S. economic data due to the government shutdown. The Bureau of Labour Statistics postponed Wednesday’s consumer price inflation report to Friday, October 24th.

Despite turbulent global conditions, the Nifty demonstrated remarkable resilience yesterday, absorbing sharp declines in international markets to close with only a marginal loss of 58 points (0.23%) at 25,227.

The index maintains a firmly bullish short-term trajectory, positioned comfortably above its near-term moving averages. Key levels to watch include immediate support at the psychological 25,000 mark and resistance around 25,400.

Today’s weekly derivative expiry, quarterly results updates and new listings will drive markets today. Among these, the debut of LG Electronics India Ltd. is expected to command significant attention as one of the country’s largest consumer electronics companies makes its debut on bourses.

Source: HDFC Securities Prime Daily, 14 October 2025

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