ADDX GO Market Morning Wrap - 28th Oct

Stock Market

On Monday (October 27), the three major U.S. indices rose collectively and all closed at record highs.

 

At the close, the Dow Jones Industrial Average rose 0.71% to 47,544.59 points; the S&P 500 gained 1.23% to 6,875.16 points; the Nasdaq Composite surged 1.86% to 23,637.46 points—all breaking the record highs set last Friday.

 

Meanwhile, the small-cap Russell 2000 Index rose 0.28%, surpassing its October 15 high. The S&P 500 Volatility Index (VIX), known as the “fear gauge,” fell below 16, hitting a low of 15.62—the lowest since September 29.

 

Most mega-cap tech stocks rose. Qualcomm surged over 11%, hitting a new high since July 2024; the company launched an AI chip to compete with Nvidia in the data center market. Tesla rose over 4%, Google and Intel gained over 3%, Apple and Nvidia rose over 2%, Amazon and Meta gained over 1%; Netflix dipped slightly. Among them, Apple and Google hit new highs, with Apple’s market cap approaching $4 trillion.

 

Over the weekend, China’s lead trade negotiator, Vice Premier He Lifeng, held U.S.-China economic and trade consultations in Kuala Lumpur, Malaysia, with U.S. Treasury Secretary Janet Yellen and Trade Representative Katherine Tai.

 

Both sides engaged in candid, in-depth, and constructive discussions, reaching basic consensus on arrangements to address mutual concerns. They agreed to further finalize details and complete domestic approval procedures.

 

CFRA Research chief investment strategist Sam Stovall commented: “This is a very positive signal.” Boosted by the news, Chinese ADRs strengthened, with the Nasdaq Golden Dragon Index closing up 1.59% on Monday.

 

This week, several U.S. tech giants will report earnings, including Microsoft, Alphabet, Meta, Apple, and Amazon from the “Magnificent Seven.” Investors also expect the Fed to cut its benchmark rate again mid-week on Wednesday.

 

The CME “FedWatch” tool shows a 97.8% probability of a 25bps cut to 3.75%-4%, with 2.2% expecting rates to hold at 4%-4.25%.

 

Stovall said small- and mid-cap stocks are undervalued relative to large-caps, so “if the U.S. continues cutting rates without recession prospects, they should perform well too.”

Global Hotspots

Mexico President Says U.S. Agrees to Extend Trade Talks Deadline

 

On October 27 local time, Mexican President Claudia Sheinbaum said U.S. President Trump agreed to extend the deadline for a deal on trade, security, and migration. Sheinbaum had a brief, friendly call with Trump last week; both agreed officials would continue work and Trump would not impose extra tariffs.

 

Progress is smooth, with talks planned in coming weeks to reach an agreement.

 

Israeli Military Says Won’t Stop Striking Hamas Until All Hostages Returned

 

On October 27 local time, IDF Chief of Staff Herzi Halevi said in a public speech that Israel’s operations against Hamas in Gaza won’t end until the last Israeli hostage is returned. “The fighting isn’t over; we must achieve our goals—bring the fallen hostages home and continue striking Hamas.”

 

Hungary PM: Russia-U.S. Presidential Meeting Will Definitely Be in Budapest

 

Hungarian PM Viktor Orbán said on October 27 local time that although the planned Russia-U.S. presidential meeting in Budapest has been postponed, it will definitely take place there. Negotiations continue. Orbán added that peace in the Russia-Ukraine conflict would lower energy prices. For Hungary, it must fight to continue importing Russian oil and gas.

 

French Parliament Passes Budget Amendment to Raise Corporate Taxes for Fiscal Compromise

 

France’s National Assembly passed an amendment Monday to raise taxes on large domestic companies next year. This is the government’s effort to control the fiscal deficit and compromise with opposition lawmakers. The Finance Ministry initially aimed to extend this year’s temporary corporate surtax to raise €4 billion (~$4.7 billion) in 2026.

 

But after lawmakers rejected other revenue measures—especially scrapping a planned freeze on personal income tax brackets—the ministry raised the target to €6 billion via amendment. “Recent amendments have cut ~€4 billion from the budget draft,” Finance Minister Roland Lescure told the Assembly, “while multiple groups believe large firms should bear more tax.”

Company News

Google Partners with NextEra to Restart Iowa Nuclear Plant, Power Expected by 2029

 

Google is partnering with NextEra Energy to restart an Iowa nuclear plant, mainly to power its AI and cloud operations. The plant is expected to supply power before 2029.

 

Amazon Reportedly Plans Up to 30,000 Job Cuts

 

Amazon plans to cut up to 30,000 jobs—nearly 10% of corporate staff. Layoffs start Tuesday local time.

 

Qualcomm Launches AI Chip to Compete with Nvidia in Data Centers

 

Qualcomm launched an AI chip to challenge Nvidia in data centers. The AI200 and AI250 are expected for commercial use in 2026 and 2027, respectively.

 

Coinbase’s CBAM Partners with Apollo to Launch Stablecoin-Based Credit Product in 2026

 

Coinbase’s investment arm CBAM announced a strategic partnership with Apollo to launch stablecoin-based credit strategies. They plan a joint innovative credit product in 2026.

 

Fermi America to Build Four Large Reactors in Texas

 

On Monday local time, Fermi America announced engineering for four large nuclear reactors to power a data center grid park in Texas Panhandle.

 

NXP Q3 Revenue $3.17B, Slightly Above Expectations

 

NXP Q3 revenue: $3.17B (vs. exp. $3.16B); Q3 adj. FCF: $509M (vs. exp. $762M); Q4 revenue guidance: $3.2B–$3.4B (vs. exp. $3.23B); Q4 adj. gross margin: 57%–58% (vs. exp. 57.5%); Q4 adj. operating profit: $1.08B–$1.21B (vs. exp. $1.11B).

 

Berkshire Hathaway Rare “Sell” Rating—Analysts Worry About Buffett Successor & Earnings

 

Warren Buffett’s Berkshire Hathaway received a rare “sell” rating. Analysts are cautious on earnings outlook, macro risks, and Buffett’s impending retirement. Keefe, Bruyette & Woods downgraded BRK.A from “market perform” to “underperform,” saying “many factors are moving in the wrong direction.”

Forex & Commodities

International precious metals futures plunged over 3%. COMEX gold futures fell 3.4% to $3,997/oz; COMEX silver futures dropped 3.61% to $46.83/oz; spot gold broke below $4,000.

 

International oil prices dipped slightly. WTI crude settled down 0.31% at $61.31/barrel; Brent crude fell 0.49% to $65.62/barrel.

Key Events

Spot Gold Challenges $4,000—What Does the Industry Think?

 

After a rapid surge from $3,300 to $4,380 over nearly two months, last week’s pullback gave gold traders a chance to step back from euphoria and reassess the safe-haven asset. Coincidentally, nearly 1,000 gold traders, brokers, and refiners are gathered at the LBMA’s largest annual conference.

 

Outgoing LBMA chair Paul Fisher bluntly called recent days’ adjustment “squeezing speculative froth.”

 

Fisher said gold prices don’t usually sustain rallies; the recent spike was “frothy.” “That’s why last week was important—it squeezed out the froth. You may see pullbacks to clear speculative positions, then the market readies for another rise, possibly even higher.”

Cryptocurrency

Bitcoin rose 0.70% in 24h to $113,924.

 

Ethereum (ETH-USD) fell 1.33% to $4,109.88.

 

XRP (XRP-USD) down 0.66%, BNB (BNB-USD) down 0.26%, Solana (SOL-USD) down 0.67%.

 

Dogecoin (DOGE-USD) down 3.02%, Cardano (ADA-USD) down 2.57%.

Key Events

First Ever! S&P Global Rates “Bitcoin Treasury” Company MicroStrategy (MSTR.US) “B-”

 

JPMorgan plans to allow institutional clients to use Bitcoin and Ethereum as loan collateral by year-end, marking deeper Wall Street crypto integration. The global program will use third-party custodians. JPMorgan previously accepted crypto ETFs as collateral; this expands further. Spokesperson declined comment.

 

S&P Global Ratings assigned MicroStrategy (MSTR.US) a “junk” B- rating—six notches below investment grade—with “stable” outlook, citing high Bitcoin concentration, single business line, weak risk-adjusted capital, and low USD liquidity.

 

Co-founder Michael Saylor said on social media: this is the first rating for a “Bitcoin treasury” company.