The Economic Timesยท2025-10-27 04:19Market Overview - Stock futures showed positive movement, indicating continued investor optimism at the start of the trading week on October 27 [1] - Futures tied to the Dow Jones Industrial Average increased by approximately 290 points or 0.6%, while S&P 500 futures gained around 0.7%, and Nasdaq 100 futures rose nearly 0.9% [8] - All three major indices hit record highs last Friday, with the Dow Jones Industrial Average adding roughly 1% (472.51 points), S&P 500 ticking up 0.79%, and Nasdaq Composite rising 1.15% [6][8] Federal Reserve Actions - The Federal Reserve made its first rate cut since December 2024 in September, lowering the federal funds rate by 25 basis points to a range of 4.00% to 4.25% [1][8] - Markets widely anticipate a second 25 basis point cut in the upcoming October 29 Federal Open Market Committee meeting to address a slowing jobs market despite persistent inflation [2][8] - Inflation rose modestly to 3.0% in September, up from 2.9% in August, which remains above the Fed's 2% goal [8] US-China Trade Situation - The US-China trade situation has shown signs of de-escalation, which has buoyed risk appetite across global markets, leading to a surge in Asian equities [5][8] - Analysts cite the calming of trade tensions alongside the Federal Reserve's anticipated rate cuts as critical factors underpinning positive market sentiment [5][8] Earnings and Economic Outlook - Technology stocks are leading gains, with key players like Microsoft and Alphabet Meta set to release their third-quarter results this week, drawing particular interest from investors [8] - Market watchers remain cautiously optimistic as favorable inflation readings combined with strong earnings growth appear to sustain the current bullish momentum [6][8] - The Federal Reserve's policies in the coming weeks will continue to be a focal point for Wall Street as investors weigh the balance between economic growth and inflation control [7][8]