TheDrop Market Analysis, 10/23/25

Markets made a surprising rebound as Trump makes last-minute reassurances of a meeting with Xi Jinping to facilitate negotiations for a U.S.-China trade deal, along with a strong earnings report from Intel, and the anticipated CPI report tomorrow.

U.S. President Donald Trump (left) and Chinese President Xi Jinping (right).

The S&P 500 rose 0.6%, the Dow Jones Industrial Average rose 0.3%, and the Nasdaq Composite surged 0.9%, leading gains. The VIX volatility index fell 7%, reflecting the magnitude of the rise in share price across the board in the afternoon.

Global ETFs rose in accordance to improved international sentiment for free trade. The FTSE 100 rose 0.67%, the CAC 40 rose 0.23%, and the DAX P rose 0.23%, although having risen by higher in the early hours. Asian stocks had a very similar response, with the Hang Seng and Nikkei making substantial gains.

In reverse from yesterday's trends, gold & silver commodities weakened while cryptocurrencies strengthened in valuation. Even the USD managed to retain much of its value despite concerns of weakness due to interest rate cuts.

Stocks were on the upside as President Trump announced the specific date and location for his meeting with Chinese leader Xi Jinping amid the ongoing trade conflict between their two nations: October 30th in South Korea. The two leaders are expected to make significant negotiations, resulting in a more favorable deal for both nations which includes tariff reductions and possibly lifting China's export restrictions of rare earth materials. Additionally, investors have been anticipating the CPI report set to release tomorrow, which has been delayed due to the ongoing government shutdown. They expect the CPI to indicate marginal price increases, resulting in more pressure on the Federal Reserve to pursue interest rate cuts before the end of the year.

Even better for interest rate odds has been Target's monumental decision to lay off 8% of its corporate workforce, a significant number and representing one of the largest layoffs by a large company in recent months.

The Magnificent Seven rose in unison, with Nvidia rising 1%, Tesla rising 2.28% (a signal of recovery for the stock after its poor earnings report), and Amazon rising 1.4%. The other members of the Mag. 7 also rose, but by reduced margins.

Several stocks held major earnings reports today. Nokia's Q3 fiscal report showed an overperformance, indicating healthy growth, and causing its share price to surge 11.17%. Intel's earnings for Q3 also released, showing a massive recovery for the chipmaker's revenue & net income as it received aid from the U.S. government and Nvidia shareholders, leading to its 3.4% rise during market hours and its 8.3% rise after the market closed.