Wall Street Scales Fresh Highs on Tech Earnings, US-China Trade Optimism

Wall Street’s main indexes posted record closing highs for the second consecutive day on Monday, driven by optimism surrounding a potential U.S.-China trade deal ahead of Thursday’s highly anticipated meeting between President Donald Trump and Chinese President Xi Jinping.

The S&P 500 rose 1.23% and the Nasdaq 100 surged 1.83% as investors welcomed news of progress in trade negotiations.

Treasury Secretary Scott Bessent reported that weekend discussions with Chinese officials in Malaysia produced a “very successful framework” for the leaders to finalise. U.S. officials indicated that negotiators have outlined agreements that include lower U.S. tariffs on Chinese imports and Chinese concessions on rare-earth export restrictions, while increasing purchases of U.S. goods.

Investors are also focused on this week’s Federal Reserve policy announcement, with the central bank widely expected to cut rates by 25 basis points on Wednesday.

Traders will scrutinise the accompanying guidance for signals about future rate cuts, even as a near-total blackout of federal economic data persists due to the government shutdown.

The week features a packed earnings calendar from technology giants Meta, Microsoft, Alphabet, Amazon, and Apple, with analysts expecting strong revenue growth for the July-September quarter. However, Amazon announced plans to eliminate up to 30,000 corporate positions starting Tuesday as part of cost reduction efforts. PayPal’s upcoming Q3 report has also drawn attention following recent volatility in the fintech sector.

The risk-on sentiment extended globally, with stock markets worldwide rallying on prospects for a trade deal.

Asian shares consolidated recent gains on Tuesday as easing trade tensions sustained investor appetite for risk assets.

The dollar weakened ahead of multiple central bank meetings, while gold fell below $4,000 per ounce amid reduced geopolitical tensions, which diminished safe-haven demand. Oil prices declined for a third session, with OPEC’s plans to increase output offsetting trade optimism.

After opening marginally higher on the back of strong global cues, Nifty continued its upward journey throughout the day, yesterday.

A decisive move above the recent swing high of 26,104 would propel Nifty towards the all-time high of 26277 and go beyond. On the downside, support is expected around the 25,700 level.

Source: HDFC Securities Prime Daily, 28 Oct 2025

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