Overview
- U.S. stocks rallied with tech leading and Japan’s Nikkei set records after a new coalition cleared the way for Sanae Takaichi, who is viewed as pro‑stimulus.
- Softer trade signals—Trump questioning 100% tariffs and a Bessent–He Lifeng call setting up fresh talks—reduced near‑term escalation risks.
- Focus turned to a crowded earnings slate for Big Tech and AI names including Tesla, Netflix, IBM and Intel, with analysts projecting roughly 9% S&P 500 profit growth in Q3.
- Futures pricing pointed to a Federal Reserve rate cut at the Oct. 28–29 meeting and another in December, with Friday’s delayed CPI taking on outsized importance during the shutdown data gap.
- China reported 4.8% year‑on‑year growth in Q3, the slowest in a year, while U.S. regional bank jitters eased after late‑week rebounds in lenders hit by credit concerns.