TheDrop Market Analysis, 10/27/25

Markets surged higher on Monday as Tesla's Elon Musk demands $1 trillion pay plan, and many hope that Trump makes significant progress in a trade deal with the People's Republic of China.

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

The Nasdaq Composite led today's rally amongst the big three index funds, with it surging past 1.8%. The S&P 500 followed suit with its strong 1.23% increase, and the Dow Jones Industrial Average rose 0.71%. Meanwhile, the Russell 2000 failed to make significant growth in point value, with it ticking up by a mere 0.28%. The VIX volatility index fell 3.54%, reflecting the market's linear trend upward over the course of trading hours.

Global stocks did rise concurrently with their American counterparts, but by much less impressive margins. In Europe, the British tech-heavy index FTSE 100 rose 0.09%, the French CAC 40 ETF rose past 0.16%, and the German DAX P rose 0.28%. Even the pan-European blue chip index Euronext 100 rose 0.35%, leading European gains just like the Nasdaq did in the United States. In Asia, gains were sharp, with the SEE Composite rising 1.18%, the Japanese Nikkei 225 blowing past 2.46%, and the Hong Kong index Hang Seng rising 1.05%.

For the first time in several days, both commodities and cryptocurrency actually held a direct relationship with each other, with gold falling 0.36% and cryptos like Bitcoin and XRP falling by marginal percentages. Quite surprisingly, silver made a strong finish today with its 0.22% rise.

Investors held a glimmer of hope in their hearts as Trump arranges a successful meeting with President Xi of China in South Korea, with a consensus being made very early on. "I've got a lot of respect for President Xi, and I think we're going to come away with a deal," said President Trump to reporters on board his flight to Japan. Trump is currently meeting with Japanese officials amid the recent swearing in of Sanae Takaichi, the first female to become prime minister of the Asian country.

Beyond Meat made a substantial 17.16% crash as generally, investors are retreating from volatile small cap stocks like BYND. Meanwhile, the largest members of the stock market, the Magnificent Seven, made very strong growth in share price, with Tesla leading the pack with its 4.3% rise as investors anticipate Musk to receive his $1 trillion pay plan. Nvidia and Google also made strong showings as artificial intelligence hopes recover.