Wall Street Review: Stocks Climb as Tailwinds Strengthen

Easing U.S.–China trade tensions, a Fed rate cut, a wave of corporate deals, and stronger-than-expected earnings boosted stocks this week.

A monitor displays stock market information at the New York Stock Exchange on Oct. 30, 2025. Angela Weiss/AFP via Getty Images

Stocks had nearly everything going their way this week: the easing of trade tensions between the United States and China, an interest rate cut, a wave of corporate deals, and better-than-expected earnings from market leaders.

The Dow Jones Industrial Average gained 0.75 percent for the week to close at 47,562, after hitting another record on Oct. 28.

The S&P 500 climbed by 0.71 percent to 6.840, after hitting a new record on Oct. 29.

The Nasdaq Composite Index fared the best, advancing by 2.24 percent to 23,724, while the Russell 2000 broke its multi-week winning streak with a loss of 1.36 percent.

Market volatility rose, with the CBOE Volatility Index—the market’s so-called “fear gauge”—rising by 6.54 percent to 17.44.

Early Week Rally on Trade Hopes, Falling Yields

Stocks opened sharply higher on Oct. 27, amid optimism over an impending U.S.–China trade agreement ahead of a meeting between President Donald Trump and Chinese leader Xi Jinping.

The rally gained steam as bond yields fell ahead of the Federal Reserve’s policy meeting. The benchmark 10-year Treasury yield dipped below the key 4 percent threshold, further supporting equity valuations.

Adding to the bullish sentiment, Qualcomm announced plans to launch artificial intelligence chips for data centers, challenging sector leaders Nvidia and AMD. Qualcomm’s stock surged nearly 12 percent, lifting the semiconductor sector.

Corporate Deals and Earnings Extend Gains

The Oct. 28 trading session demonstrated additional strength, bolstered by strong earnings across several sectors and a wave of corporate announcements.

In health care, UnitedHealth Group and Regeneron Pharmaceuticals rallied after topping profit estimates, with UnitedHealth providing a major boost to the Dow. United Parcel Service also reported strong results amid progress in its turnaround strategy.

In the technology sector, merger and partnership activity dominated headlines. Radio-frequency chipmakers Skyworks Solutions and Qorvo announced a merger; PayPal revealed a new partnership with OpenAI; Nvidia invested $1 billion in Nokia, hitting an all-time high; and Microsoft disclosed a 27 percent stake in OpenAI.

The rally cooled by the end of the session as traders took profits ahead of the Federal Reserve meeting and major Big Tech earnings, causing the Russell 2000 to decline.

Fed Cuts Rates, Markets React Cautiously

On Oct. 29, the Federal Reserve delivered a widely expected 25-basis-point rate cut, setting the federal funds rate at a new target range of 3.75 to 4 percent.

However, investor enthusiasm faded as Chairman Jerome Powell offered little clarity on whether another cut would follow in December.

“Fed Chair Powell pushed back hard on the belief that a December interest rate cut is locked in. He tried to say it is not a foregone conclusion, but a December rate cut still seems likely,” Heather Long, chief economist at Navy Federal Credit Union, told The Epoch Times.

“No Fed leader wants to be responsible for a slowdown or a recession. The push will continue to protect the labor market from further deterioration and to bring interest rates back to neutral,” Long said.

Long believes that officials at the Federal Reserve will remain more focused on the job market than on inflation.

“It’s clear tensions will remain on the committee and there will be a hearty debate at the December meeting about what to do, but the Fed is in the business of protecting from downside risks and the biggest risk of all remains more layoffs,” she said.

The bond market reacted negatively to Powell’s remarks, with the 10-year Treasury yield jumping by 10 basis points to 4.07 percent.

Stocks ended the day mixed, with the Nasdaq the only major index to close higher.

Renewed Trade Optimism

On Oct. 30, Microsoft and Meta Platforms revealed colossal capital expenditure on artificial intelligence (AI) in their earnings reports, triggering a brief stock sell-off.

Markets stabilized later as news broke of progress on a U.S.–China trade agreement.

By Oct. 31, investor confidence had rebounded sharply. Strong earnings from Amazon and Apple powered another round of gains, extending the major indexes’ weekly winning streaks. Netflix also lifted sentiment with the announcement of a 10-for-1 stock split.

Analysts Eye December for Possible Rate Cut

Market strategists remain divided on the Federal Reserve’s next move but see continued support for equities in the near term.

“It’s fair to characterize Wednesday’s Fed meeting as unusual,” said David Laut, chief investment officer at California-based KERUX Financial.

“Even with limited economic data due to the government shutdown, the Fed appears ready to cut again in December as labor market sentiment weakens,” Laut told The Epoch Times.

Laut advised investors to rebalance their portfolios by trimming positions in large-cap tech, communications, and AI stocks and rotating into value and fixed-income assets.

Paul Stanley, chief investment officer at New Hampshire-based Granite Bay Wealth Management, calls for patience.

“Stocks never go up in a straight line. The recent dips have proven to be good opportunities,” Stanley told The Epoch Times.

Clark Bellin, president and CIO at Nebraska-based Bellwether Wealth, expects markets to moderate in the final months of 2025.

“While year-end is typically favorable for equities, we may see a more tempered market in November and December, given the strong gains in September and October,” Bellin told The Epoch Times.