Stock market recap: Nasdaq Composite and Nikkei 225 lead global gains as U.S.

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Stock market recap

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Global indexes

- S&P 500: 6 791.69 (+0.00%)

- Nasdaq Composite: 23 204.87 (+1.15%)

- Dow Jones Industrial Average: 47 207.12 (+0.00%)

- FTSE 100: 9 663.26 (+0.18%)

- Nikkei 225: 50 512.32 (+2.46%)

- Hang Seng Index: 26 433.70 (+1.05%)

- Shanghai Composite: 3 996.94 (+1.18%)

U.S. markets

U.S. stock futures signaled a strong open Monday, with S&P 500 futures up 0.8 percent in pre-market trading, following a robust performance last week. Treasury Secretary Scott Bessent said over the weekend that high-level negotiations in Malaysia had yielded “a very successful framework” for the two presidents to finalize.

The expected trade breakthrough could stave off a planned 100 percent tariff on Chinese imports and prompt China to ease its export restrictions on rare-earth materials—key inputs for advanced manufacturing and clean-energy technologies.

U.S. investors also looked ahead to a week of major earnings from Apple Inc. and Microsoft Corp., as well as a Federal Reserve decision widely anticipated to deliver a 25-basis-point rate cut. A softer-than-expected inflation print last week has strengthened the case for policy easing, providing additional fuel for equity valuations.

European markets

European stocks traded near record territory, buoyed by the same optimism. The pan-European Stoxx 600 rose 0.1 percent to 575.92 after touching an all-time high of 577.26 earlier in the session. Germany’s DAX gained 0.2 percent ahead of new business-confidence data from the IFO Institute.

Investors across the continent balanced enthusiasm about the U.S.–China outlook with caution toward upcoming central-bank decisions. The European Central Bank is expected to keep rates steady while reiterating its commitment to support growth amid subdued inflation pressures.

Asian markets

Asian equities surged on Monday as easing trade tensions and supportive macroeconomic data spurred renewed risk appetite. The Shanghai Composite rallied 1.2 percent to 3 996.94, while Hong Kong’s Hang Seng Index added 1.05 percent.

Japan’s Nikkei 225 outperformed, jumping 2.46 percent, reflecting optimism over export demand and yen stability.

Chinese data showed industrial profits surged 21.6 percent year-over-year in September — the largest increase since November 2023 — suggesting a recovery in domestic manufacturing momentum.

Outlook and conclusions

The upward momentum reflected investors’ renewed confidence in global trade stability and central-bank support measures. Asian equities led the rally, with Japan’s Nikkei climbing more than 2 percent and China’s Shanghai Composite hitting a new 10-year high after reports of a “substantial framework” agreement between the U.S. and China.

Global equity markets appear poised to maintain upward momentum in the short term, contingent on progress in U.S.–China trade discussions and dovish central-bank stances. A confirmed trade framework would mark a pivotal moment for global commerce, potentially boosting corporate earnings and cross-border investment flows.

However, analysts caution that volatility could re-emerge if negotiations falter or if the Federal Reserve signals a less-accommodative policy stance than investors expect. For now, markets are betting on cooperation — and relief — after months of geopolitical uncertainty.

It was earlier reported that Nvidia stock up 4.3% amid bullish sentiment from top investors.

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