Stock Market News·2025-10-31 18:00Core Insights - The financial markets experienced significant volatility due to a series of policy announcements from former President Trump, including a trade deal with China and the resumption of nuclear weapons testing [1][11]. Trade Developments - Trump announced a "framework for China trade deal" following talks with President Xi Jinping, leading to an initial positive market reaction [2][3]. - The deal included a reduction in US fentanyl-related tariffs on China to 10% and a one-year pause on other tariffs, while China agreed to resume large purchases of soybeans and extend a pause on export controls for rare-earth minerals [3][4]. - Analysts expressed skepticism, viewing the agreement as a temporary cease-fire rather than a long-term solution, highlighting ongoing structural imbalances [4]. Nuclear Testing Announcement - Trump announced the resumption of US nuclear weapons testing, breaking a three-decade moratorium, which raised concerns about a potential arms race and global security destabilization [5][6]. - Analysts criticized this move, stating there was no technical or political justification for resuming such tests [6]. Market Reactions - The week saw significant market fluctuations, with major indices experiencing a downturn on October 30, where the S&P 500 fell 0.99% and the Nasdaq Composite dropped 1.58% [7]. - However, on October 31, markets rebounded, with the S&P 500 rising 0.6% and the Nasdaq Composite increasing by 1.2%, driven by strong corporate earnings from tech companies [8][9]. - Notable performances included Amazon's 11% surge following a 20% increase in AWS revenue, and a positive response to Netflix's stock split announcement [9]. Overall Market Performance - October proved to be a strong month for the markets, with the S&P 500 gaining 2%, the Nasdaq increasing by 5%, and the Dow achieving its sixth consecutive monthly gain [10].