28 October 2025,03:40
Daily Market Analysis New
28 October 2025, 03:40
Key Takeaways:
*The Nasdaq and S&P 500 surged to fresh ATH, driven by upbeat sentiment ahead of the U.S.–China trade talks.
*Expectations of a Fed rate cut this week and continued BoJ policy accommodation are reinforcing global liquidity and fueling the rally.
*The upcoming results from Tesla, Microsoft, Apple, Meta, Amazon, and Alphabet will serve as the key test for sustaining record valuations.
Market Summary:
Wall Street surged with heightened risk-on sentiment, propelling the Nasdaq Composite and S&P 500 to fresh all-time highs as all three major indices closed firmly in positive territory. The bullish momentum was primarily fueled by growing optimism surrounding the upcoming U.S.-China trade negotiations scheduled for Thursday. Reports of a preliminary “framework” for a deal, which is expected to secure crucial exports of rare earth minerals from China, have significantly buoyed investor confidence, particularly within the technology sector.
Furthermore, the equity market is drawing substantial support from a decidedly dovish outlook for global central bank policy. The market is widely anticipating a rate cut from the Federal Reserve on Wednesday, with expectations firmly anchored for an additional easing move before the end of 2024. This speculation is reinforced by last week’s softer CPI reading, which confirmed easing inflationary pressures. Concurrently, the Bank of Japan is expected to maintain its accommodative stance, a scenario that favors the carry trade and supports ample global liquidity, thereby providing a tailwind for risk assets.
Consequently, the stage is set for a pivotal week. While the dual tailwinds of trade optimism and accommodative policy have ignited a powerful rally, the market’s forward momentum now faces a critical test from a high-stakes earnings season. The performance of tech behemoths—including Tesla today, followed by Microsoft, Apple, and Meta on Wednesday, and Amazon and Alphabet on Thursday—will serve as the ultimate litmus test for sustaining these record valuations. The robust 2.6% jump in a gauge of the “Magnificent Seven” ahead of their reports suggests a bullish consensus, positioning the tech-heavy indices for a potentially volatile but decisive period.
Technical Analysis
The Nasdaq Composite cemented a decisive bullish breakout in the last session, surging 1.86% to a fresh all-time high of 23,637.46. The index is demonstrating formidable upward momentum, with the rally appearing poised for further extension in the near term. This constructive outlook is supported by momentum indicators that are firmly in bullish territory; the Relative Strength Index (RSI) has advanced into overbought levels, while the Moving Average Convergence Divergence (MACD) continues to trend higher without any immediate signs of bearish divergence, suggesting the current uptrend possesses underlying strength.
However, amidst the prevailing bullish bias, a note of tactical caution is warranted. A notable gap remains unfilled within the index’s recent ascent. Such price imbalances often act as a gravitational pull, increasing the probability of a near-term technical pullback to fill the void before the primary uptrend can sustainably resume. While the overall structure remains unequivocally bullish, traders are advised to be mindful of this potential for short-term volatility. The key for the bulls will be to defend any such pullback and hold above the gap’s support level to maintain control of the broader trajectory.
Resistance level: 26,230.70, 26,625.60
Support level: 25,500.00, 25,181.60
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