Market Performance
The S&P 500 Index (linked to $SPX) is up by +0.87%, while the Dow Jones Industrials Index (linked to $DOWI) has increased by +0.52%. The Nasdaq 100 Index (linked to $IUXX) shows a stronger gain of +1.32%. Additionally, December E-mini S&P futures (linked to ESZ25) are up +0.82%, and December E-mini Nasdaq futures (linked to NQZ25) have risen by +1.30%.
Trade Agreement Developments
US stocks gained today following talks between US and Chinese officials in Malaysia, where they announced a provisional trade agreement. This deal is set to be discussed further at a summit between Presidents Trump and Xi during the Asia-Pacific Economic Cooperation conference in South Korea on Thursday. Treasury Secretary Bessent noted that the US’s potential 100% tariff on imports from China, starting November 1, is now considered “effectively off the table.” Concurrently, China committed to not restricting rare earth metal exports for at least a year and to purchasing a considerable quantity of US soybeans.
Federal Reserve Chair Candidates
Bessent also mentioned that the candidate list for the next Fed Chair has been refined to Christopher Waller, Kevin Warsh, Kevin Hassett, Michelle Bowman, and Rick Rieder. President Trump is anticipated to announce his selection by year-end to succeed current Chair Powell, whose term runs until May 15, 2026.
Upcoming Economic Events
This week is set to be packed, with the FOMC meeting scheduled for Tuesday and Wednesday, where a -25 basis point reduction in the federal funds rate is expected. Additionally, earnings reports from five of the “Magnificent Seven” stocks will be released, including Alphabet, Meta, and Microsoft on Wednesday, followed by Apple and Amazon on Thursday.
Impact of the Government Shutdown
The ongoing US government shutdown, now in its fifth week, is adversely affecting market confidence and the economy. The shutdown has caused delays in various government reports, including unemployment claims and retail sales figures. Bloomberg Economics estimates that approximately 640,000 federal employees will be furloughed, contributing to a rise in unemployment claims.
Global Market Trends
International markets are trending upward, with the Euro Stoxx 50 climbing +0.27%, China’s Shanghai Composite closing +1.18% higher, and Japan’s Nikkei Stock 225 up +2.46%.
US Stock Movements
The Magnificent Seven stocks are all in the green today, led by Nvidia, Alphabet, Tesla, and Meta, each up more than +2%. Chipmakers are experiencing a surge, with Intel and Lam Research gaining over +3%. In the cryptocurrency sector, stocks are also rising, bolstered by Bitcoin and Ethereum’s strong performance. Avidity Biosciences has surged by +42% following the announcement of its $12 billion acquisition by Novartis. Meanwhile, Keurig Dr Pepper is up +4% after raising its full-year sales forecast.
