Global stocks hit records on US–China trade optimism

US markets hit new highs on hopes of a US–China deal

Major US indices closed at record levels amid widespread market optimism that an imminent meeting between Presidents Donald Trump and Xi Jinping could yield steps towards tariff reductions and greater openness on rare-earth exports. Although the leaders are not scheduled to meet until Thursday, October 30, investors have increasingly priced the prospect of a trade détente as a catalyst for improved global growth.

The release of softer US inflation data last Friday further reinforced expectations of monetary easing. CME Group’s FedWatch Tool currently assigns a high probability to a 25-basis-point cut at the Federal Reserve’s meeting on Wednesday, October 29. Anticipation of lower policy rates typically supports equity markets by lowering discount rates and reducing the cost of capital for corporate investment.

On the session, the Dow Jones rose 0.71% to 47,544 points, the S&P 500 increased 1.23% to 6,875, and the Nasdaq-100 advanced 1.83% to 25,821.

IBEX-35 hits an all-time high of 16,000

Spain’s benchmark index, the IBEX-35, reached a record level of 16,000 points, surpassing the 15,950 barrier that had not been breached since late 2007. The index closed the day up c. 0.87% and has delivered a year-to-date capital gain of approximately 39.4%, placing it among the strongest performers globally in the evaluation period.

Figure 1. Ibex index: historical overview (1990-2025). Source: Figure obtained from TradingView.

Nikkei-225 tops 50,000 on stimulus expectations

The Nikkei-225 achieved a new all-time high, rising c. 2.49% and surpassing the 50,000-point mark as markets anticipated expansionary fiscal and monetary measures consistent with Prime Minister Sanae Takaichi’s stated growth objectives. The index’s year-to-date return stands at roughly 27%.

Chinese equities also advanced on optimism surrounding US–China discussions: the FTSE China A50 gained c. 1.20% and the Hang Seng rose c. 1.11%.

Figure 2. Nikkei index: historical overview (1960-2025). Source: Figure obtained from TradingView.

Qualcomm to produce AI accelerator chips; shares jump

CNBC reported that Qualcomm announced plans to launch new artificial-intelligence accelerator chips, marking a strategic move beyond its traditional strength in wireless connectivity and mobile semiconductors and into higher-margin, data-centre applications. The announcement prompted a strong market reaction: Qualcomm’s shares rose c. 11.09% to US$187.68, reflecting investor enthusiasm for the company’s diversification into AI hardware.

Figure 3. Qualcomm’s share price (2024-2025). Source: Data from the Nasdaq Exchange. Figure obtained from TradingView.

Wall Street's third-quarter reporting (week overview)

This week is notable for the number of U.S. companies reporting their third-quarter financial results. Some of the most significant ones, in terms of market capitalization and popularity, are as follows:

Tuesday

• Visa (V)
• UnitedHealth (UNH)
• PayPal (PYPL)

Wednesday

• Microsoft (MSFT)
• Alphabet (GOOGL)
• Meta Platforms (META)
• Caterpillar (CAT)
• Boeing (BA)
• Verizon (V)
• Starbucks (SBUX)

Thursday

• Apple (AAPL)
• Amazon (AMZN)
• Eli Lilly (LLY)
• Mastercard (MA)
• Merck&Co (HRC)

Friday

• Exxon Mobil (X'M)
• AbbVie (ABBV)
• Chevron (CVX)

Key economic events this week

Monday

• Germany: Ifo Business Climate

Tuesday

• Alemania: Gfk Consumer Confidence

Wednesday

• Japan: Consumer Confidence
• Canada: BoC Interest Rate Decision
• US: Fed Interest Rate Decision

Thursday

• Japan: BoJ Interest Rate Decision
• Germany: GDP Growth Rate
• European Union: GDP Growth Rate
• European Union: ECB Interest Rate Decision

Friday

• China: NBS Manufacturing PMI
• European Union: Inflation Rate
• US: PCE Price Index