Market Euphoria Builds Ahead of Crucial Week 27/10/2025

HOT stories for today

Market wrap:

• U.S. equities closed at fresh highs Friday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all setting new records after delayed inflation data showed consumer prices rising 3.0% in September. The release, postponed by the ongoing government shutdown, came in slightly cooler than Wall Street’s 3.1% estimate. Futures extended gains in early trading on Monday: S&P 500 contracts climbed 0.7%, Nasdaq 100 futures advanced 0.9%, and Dow futures added about 290 points, or 0.6%. Despite the year-on-year uptick, traders are all but sure the Federal Reserve will lower rates next week, with futures markets pricing in nearly a 100% probability of a 25-basis-point cut, bringing the target range to 4.00%-4.25%.
• Moody’s analysts warned that tariffs could lift prices for imported goods such as beef, coffee, and household items, but said overall inflation pressures remain contained. Still, the U.S. economy remains mired in what some economists call a “sticky 3%” inflation zone. The Fed, one strategist at B. Riley Wealth noted, is now watching labor data more closely than prices. Investor sentiment also got a boost from optimism over a potential U.S.-China trade breakthrough ahead of a planned Trump–Xi meeting. The Nikkei 225 briefly topped 50,000 for the first time as markets in Asia tracked the global rally ahead of Japan’s Takaichi–Trump talks.
• Wall Street now braces for a midweek test as the Fed decision collides with a wave of Big Tech earnings. Members of the so-called “Magnificent Seven” —Alphabet, Amazon, Apple, Meta Platforms, and Microsoft —are all slated to report third-quarter results in the coming days.

Wall Street faces big test on Wednesday

• Wall Street’s record rally hits a crucial test on Wednesday as the Fed’s rate decision coincides with a barrage of megacap tech earnings, all while the government shutdown delays key economic data. The S&P 500, Dow, and Nasdaq have notched fresh highs this month, but traders are watching whether momentum can last into year-end. The Fed is expected to cut rates by 25 basis points to 3.75%–4.00%, though uncertainty looms amid the lack of recent data.
• Analysts say the bigger surprise could be signals on ending quantitative tightening. Meanwhile, earnings from Microsoft, Meta, and Alphabet on Wednesday, followed by Apple and Amazon on Thursday, will dominate market sentiment. With valuations stretched and “whisper” expectations high, any miss could trigger sharp pullbacks. Political gridlock and missing data add to volatility risks, with economists warning that delayed reports could unleash outsized market swings once released.

Stocks on the move:

• Ford Motor (F): The Detroit automaker surged 10.7% after reporting third-quarter earnings that beat expectations. Adjusted EPS was 45 cents versus 36 cents forecast by LSEG, with revenue of $47.19 billion topping the $43.08 billion consensus.
• Alphabet (GOOGL): Shares rose 2.5% after Alphabet’s Google and AI startup Anthropic announced a multibillion-dollar cloud partnership, granting Anthropic access to up to one million of Google’s custom Tensor Processing Units (TPUs).
• Intel (INTC): The chipmaker gained 1.1% before paring back, after reporting stronger-than-expected revenue driven by a rebound in demand for its x86 PC processors.
• Advanced Micro Devices (AMD): Shares jumped 6.6% after IBM said it successfully ran a key quantum computing error-correction algorithm on AMD chips, Reuters reported.

Watchlist: NVDA, META, GOOGL, AMZN, OKLO, IONQ, IBM, COIN

Key Economic Events Today:

EST time

No significant economic data



Earnings

AMC (After Market Close): Welltower (WELL), Cadence Design System (CDNS), Waste Management (WM), NXP Semiconductors (NXPI)



The TEFS Analyst team wishes you a successful day!