Finance

Tech Stocks Surge, Trade Talks Advance: How to Profit from This Week’s Market Moves

Stocks rose as investors eyed the Fed meeting and U.S.-China trade progress; tech giants led gains.

byAndres Castro

October 27, 2025, 6:03 PM

A close-up of the Wall Street street sign with an American flag and buildings blurred.

The iconic Wall Street street sign in New York's financial district. By MDL.

Executive Summary

U.S. stock index futures saw gains, continuing Monday’s rally to record highs, driven by strong performances from technology giants like Nvidia, Microsoft, Palantir, and Tesla ahead of major tech earnings this week.

Recent U.S.-China trade discussions concluded with progress, setting the stage for President Donald Trump and China’s President Xi Jinping to potentially finalize a deal, with threatened tariffs “effectively off the table.”

The Federal Reserve’s two-day policy meeting began, with market participants widely expecting a quarter-point interest rate cut on Wednesday, and Chairman Jerome Powell’s news conference to be closely watched for future guidance.

The Story So Far

The current market rally and investor anticipation are largely driven by two significant events: the Federal Reserve’s two-day policy meeting, where a quarter-point interest rate cut is widely expected, and recent progress in U.S.-China trade discussions, which are setting the stage for President Donald Trump and China’s President Xi Jinping to potentially finalize a comprehensive deal, with threatened tariffs seemingly off the table. Additionally, upcoming earnings reports from major technology companies are also drawing considerable investor attention.

Why This Matters

The ongoing Federal Reserve meeting, widely expected to result in a quarter-point rate cut, could provide further economic stimulus and influence future monetary policy. Concurrently, significant progress in U.S.-China trade negotiations between President Donald Trump and President Xi Jinping suggests a potential de-escalation of trade tensions, potentially leading to a comprehensive deal that removes tariff threats and boosts global commerce. These macroeconomic developments, alongside upcoming earnings reports from major technology companies, are poised to significantly shape market trajectory and investor sentiment in the coming weeks.

Who Thinks What?

Investors are optimistic about the market, pushing major indexes to record highs, especially in technology stocks, as they anticipate positive outcomes from U.S.-China trade negotiations and a Federal Reserve rate cut.

U.S. trade officials, including Jamieson Greer and Treasury Secretary Scott Bessent, are optimistic about the progress in U.S.-China trade talks, expecting a comprehensive deal to be finalized and President Trump’s threatened tariffs to be “effectively off the table.”

Market participants widely expect the Federal Reserve to implement another quarter-point cut to its key interest rate and will be closely watching Chairman Jerome Powell’s news conference for indications regarding future monetary policy.

U.S. stock index futures saw slight gains ahead of Tuesday’s market open, following a rally on Monday that pushed major indexes to record highs. Technology giants Nvidia, Microsoft, Palantir Technologies, and Tesla were notable performers, closing within or near buy zones as investors anticipated key economic events, including a Federal Reserve policy meeting and potential advancements in U.S.-China trade negotiations.

Monday’s Market Performance and Key Stocks

On Monday, the Dow Jones Industrial Average advanced 0.7%, or 337 points, while the S&P 500 increased 1.2% and the Nasdaq composite climbed 1.9%. This upward momentum continued into Tuesday’s pre-market, with Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures all ticking higher.

Nvidia stock surged nearly 3%, closing within its buy zone above a 184.48 buy point, with its 5% buying range extending to 193.70. Microsoft shares rose 1.5%, surpassing an early entry point at 531.03 as a flat base developed with a 555.45 buy point. The software giant is scheduled to report earnings late Wednesday.

Palantir Technologies stock marked its third consecutive session of gains, reaching a 188.20 buy point. Tesla also saw significant movement, climbing more than 4% on Monday and breaking past Friday’s high of 451.68, which some aggressive investors used as an early entry.

Beyond Microsoft, other major technology companies, including Meta Platforms, Alphabet, and Amazon, are also slated to release their earnings reports this week, drawing investor attention.

U.S.-China Trade Talks Progress

Recent trade discussions between the U.S. and China in Malaysia concluded with both nations indicating agreement on numerous issues. This progress sets the stage for President Donald Trump and China’s President Xi Jinping to potentially finalize a deal.

U.S. Trade Representative Jamieson Greer informed reporters that both sides are “moving forward to the final details” and expressed optimism for a “very comprehensive deal.” Treasury Secretary Scott Bessent suggested that President Trump’s previously threatened 100% tariff on Chinese goods is “effectively off the table,” anticipating significant soybean purchases by China and a delay in rare earth export curbs. The two leaders are expected to meet on Friday, October 31, during the APEC summit in South Korea.

Federal Reserve Meeting Underway

The Federal Reserve’s two-day policy meeting commenced on Tuesday, with market participants widely expecting the central bank to implement another quarter-point cut to its key interest rate on Wednesday. The policy statement is due at 2 p.m. ET.

Following the rate decision, Chairman Jerome Powell’s 2:30 p.m. news conference will be closely watched for indications regarding the likelihood of a further rate cut on December 10, particularly in light of the September consumer price index data.

Broader Market Indicators

In other market movements, the 10-year U.S. Treasury yield remained stable at 3.99%. Oil prices experienced a slight increase, with West Texas Intermediate futures settling near $61.60 per barrel.

Market Outlook

Investors are navigating a dynamic market environment marked by strong corporate earnings expectations, significant geopolitical developments concerning U.S.-China trade, and a pivotal Federal Reserve policy meeting. The performance of key technology stocks continues to drive market sentiment as these events unfold.