Finance

Wall Street Surges: How Cleveland-Cliffs and Gold Prices Defied Economic Headwinds

U.S. stocks rose on Oct. 20 due to positive earnings outlooks and easing trade tensions; Cleveland-Cliffs surged.

October 20, 2025, 4:48 PM

Wide interior view of the complex, multi-level New York Stock Exchange trading floor covered with screens and structural beams.

This wide-angle interior photograph captures the vast and complex trading floor of the New York Stock Exchange, complete with numerous digital screens and corporate logos. By lev radin / Shutterstock.com.

Executive Summary

The U.S. stock market registered gains across major indices on October 20, 2025, driven by optimistic corporate earnings outlooks and signs of easing U.S.-China trade tensions.

Cleveland-Cliffs (CLF) stocks jumped 10.5% in premarket trading, attributed to rising automotive steel demand, support from Trump’s trade policies, and a strategic move into rare-earth mineral production.

Gold prices saw strong gains, nearing an all-time peak of $4,358 per ounce, fueled by investor demand for safe-haven assets amidst global economic uncertainties.

The Story So Far

The current market gains are occurring amidst easing U.S.-China trade tensions, which are contributing to overall optimism, even as the Trump administration’s specific trade policies are credited with bolstering demand in sectors such as automotive steel. Concurrently, a broader national strategy to reduce reliance on foreign sources, particularly China, for critical materials like rare-earth minerals is driving strategic shifts in U.S. industries. These dynamics are unfolding against a backdrop of persistent global economic uncertainties and geopolitical tensions, which continue to fuel demand for safe-haven assets like gold.

Why This Matters

The U.S. stock market’s recent gains, driven by optimistic corporate earnings and easing trade tensions, suggest a cautious return of investor confidence, while Cleveland-Cliffs’ strategic pivot into rare-earth mineral production, supported by Trump administration trade policies, highlights a national effort to bolster domestic supply chains and reduce reliance on foreign sources. Concurrently, the near all-time high in gold prices underscores persistent global economic uncertainties and geopolitical tensions, signaling a continued demand for safe-haven assets amidst an unpredictable landscape.

Who Thinks What?

Market participants showed optimism driven by potential progress in U.S.-China trade discussions and stronger corporate earnings outlooks.

Cleveland-Cliffs CEO Lourenco Goncalves and company stakeholders attributed the stock surge to rising demand for automotive-grade steel, supported by Trump’s trade policies, and a strategic move into rare-earth mineral production.

Investors in precious metals sought safe-haven assets, leading to increased gold and silver prices amidst ongoing global economic uncertainties and geopolitical tensions.

The U.S. stock market registered gains on October 20, 2025, driven by optimistic corporate earnings outlooks and signs of easing trade tensions between the U.S. and China. Cleveland-Cliffs (CLF) stocks experienced a significant surge in premarket trading, while gold prices also climbed, nearing an all-time peak amidst global economic uncertainties.

Market Performance

Dow futures were up 0.28%, Nasdaq futures gained approximately 0.21%, and S&P 500 futures rose around 0.48%. These gains were supported by optimism surrounding potential progress in U.S.-China trade discussions and stronger corporate earnings outlooks from companies such as Tesla and Netflix. Additionally, investor concerns regarding regional banking and AI stock sell-offs appeared to ease.

Cleveland-Cliffs Rally

Cleveland-Cliffs (CLF) stocks jumped about 10.5% in premarket trading. This surge occurred despite mixed third-quarter 2025 results, which showed an adjusted loss per share of $0.45, meeting analyst forecasts, but revenue slightly missed estimates at $4.7 billion against a $4.9 billion consensus.

The company’s stock rally was attributed to several positive factors, including signs of rising demand for automotive-grade steel, supported by the Trump administration’s trade policies. Multi-year supply agreements with major automotive original equipment manufacturers (OEMs) and a new strategic focus on rare-earth mineral production from its upstream mining assets in Michigan and Minnesota also contributed to the gains.

CEO Lourenco Goncalves highlighted that the move into rare-earth production aligns with a broader national strategy to reduce reliance on foreign sources, particularly China. The company also announced a reduced capital expenditure forecast of $525 million for 2025, down from $600 million, and reported improved adjusted EBITDA and liquidity.

Precious Metals

Gold prices saw strong gains, with futures trading around $4,340.7 per ounce, marking a daily increase of approximately 3%. Prices ranged from a low near $4,229.7 to a high of $4,344.7, following gold’s recent achievement of an all-time peak near $4,358 per ounce.

Silver prices were slightly lower than their recent all-time highs but remained elevated, trading around $52.79 per ounce, a modest decrease from its overnight high of $54.47. Both gold and silver have experienced significant year-to-date gains, driven by investor demand for safe-haven assets amid ongoing global economic uncertainties and geopolitical tensions.

Market Outlook

Overall, the market demonstrated resilience with broad gains across major indices and notable individual company performance. Strategic shifts within key industries and ongoing global economic dynamics continue to shape investor sentiment and commodity prices.