publication
2025-10-28 21:08
Tuesday's session on the New York stock exchanges brought further growth in the bull market, driven by dynamic increases in the prices of large technology companies. Nvidia's galloping stock prices stood out.
Euphoria. This is one word to describe what has been happening on Wall Street for several days. Especially when we look at the bigtech sector. The Nasdaq, dominated by them, is breaking historic highs day after day, opening with the so-called bull market loopholes. On Tuesday alone, the Nasdaq Composite gained 0.80% and climbed to 23,827.49 points.
The S&P500 index recorded a much more modest increase – by only 0.23%. But also in this case it was a new all-time record. Since their April lows, both indexes have increased by 42% and 60%, respectively. And this is without any correction or even turbulence longer than one day.
– Momentum and corporate profits are pulling the market up – said Peter Cardillo, chief economist at Spartan Capital Securities in New York, in a rather unrevealing way when interviewed by Reuters reporters. “There is also enthusiasm for Trump's Asia tour,” Cardillo added.
The US president has just concluded a new agreement with Japan and announces a trade agreement with China. Chinese Foreign Minister Wang Yi said on Monday that Beijing had reached a “framework consensus” with the US on key trade issues. This is the first official confirmation from the Chinese side of what the US has been saying since Sunday.
We're now in the thick of earnings season on Wall Street, but the biggest tech companies haven't released their Q3 reports yet. However, their prices increased significantly. Nvidia's shares rose by almost 5% today after information about the order to build seven supercomputers for the US Department of Energy for – a trifle – $500 billion.
Microsoft's stock rose by almost 2%. Apple's share price rose so much during the day that the company reached over four trillion dollars in market value. So far, only Nvidia (its capitalization is now approaching USD 4.9 trillion) and Microsoft were valued at more than USD 4 trillion.
This week, Microsoft, Alphabet, Amazon and Meta will report quarterly results. Analysts estimate that company profits attributable to the S&P500 index increased by 10.5% year-on-year in the last quarter. And at the beginning of October, they were expected to grow by 8.8% year on year. This does not change the fact that the American market is already valued extremely high. It was more expensive only at the peak of the previous bull market in 2021 and during the height of the Internet bubble at the end of the 20th century.
In addition, a two-day meeting of the Federal Open Market Committee began on Tuesday. Investors are almost 100% convinced that the Fed will cut their interest rates by another 25 basis points. And that he will loosen monetary policy also in 2026, thereby filling the cash of fund managers and inflating the valuation of financial assets
