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Stock Market Today: Nasdaq, S&P End Sharply Lower With Meta's Plunge

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  Published in Stocks and Investing on Thursday, October 30th 2025 at 21:20 GMT by investors.com
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Stock Market Today: Trump, Xi, and Meta Drive Volatility Amid Economic Uncertainty

The U.S. equity markets opened higher on Thursday, buoyed by positive sentiment surrounding a potential shift in political leadership and fresh diplomatic talks between the United States and China. The Dow Jones Industrial Average rose 0.8%, the S&P 500 gained 1.1%, and the Nasdaq Composite climbed 1.3%, closing at all‑time highs. Despite the upbeat numbers, traders kept a wary eye on a range of macroeconomic risks, including rising inflation, the Federal Reserve’s policy trajectory, and the global supply‑chain disruptions that continue to weigh on corporate earnings.

Political Pulse: Trump’s Possible Bid and Xi’s Diplomatic Outreach

At the center of the day’s chatter was former President Donald Trump’s tentative announcement that he may run in the 2024 election. Trump’s statement, delivered at a press conference in Washington, D.C., was met with a mix of enthusiasm from Republican voters and concern from Democrats who warned of a potential “political divide” that could hurt the economy. Market analysts noted that the S&P 500’s Tech‑Heavy Index, which includes the likes of Apple, Amazon, and Meta Platforms, benefited from the surge in political speculation, as investors expected a potential shift in regulatory priorities toward more favorable tech policies.

Concurrently, U.S. officials reported that President Xi Jinping had engaged in high‑level talks with Secretary of State Antony Blinken in New York. The talks focused on trade imbalances, intellectual‑property concerns, and the broader U.S.–China relationship. While the discussions did not resolve long‑standing trade disputes, both sides expressed a willingness to find common ground, which helped calm some of the more volatile currency markets. Analysts forecast that the positive tone from the talks could bolster consumer confidence, especially in sectors linked to China such as electronics manufacturing and raw‑material supplies.

Corporate Highlights: Meta’s Earnings Surprise and Other Sector Movements

Meta Platforms (formerly Facebook) released its third‑quarter earnings report earlier in the week, reporting a 5% increase in quarterly revenue to $32.8 billion, well ahead of analysts’ expectations of $31.5 billion. The company’s earnings per share (EPS) rose to $3.40 from $3.10, reflecting a stronger performance in its advertising division. Meta’s stock surged 3.2% in pre‑market trading, as investors priced in a continued rebound in digital advertising, even as the company faced regulatory scrutiny over data privacy concerns.

Other notable corporate moves included a 2.5% increase in Tesla’s shares after the electric‑vehicle maker announced a new battery‑cell production line in Texas. Meanwhile, Amazon experienced a 1.8% rise on the news that its logistics arm, Amazon Logistics, will begin pilot operations in India by the end of the year. In contrast, the energy sector lagged, with the SP 500 Energy Index falling 1.6% after crude‑oil prices dipped to $73 per barrel, a drop attributed to increased inventories and a weaker economic outlook in Europe.

Macro Backdrop: Inflation, Fed Policy, and the Dollar

Inflation data released earlier in the day showed a year‑over‑year increase of 4.3% in the Consumer Price Index (CPI), a slight uptick from the 4.0% reported in March. While the rise remains below the Federal Reserve’s 2% target, it has prompted analysts to speculate about a possible “softening” of the Fed’s policy tightening cycle. The Federal Reserve Chair’s upcoming remarks in Washington are expected to address whether the central bank will pause or raise interest rates at the next policy meeting.

The U.S. dollar, which had hovered near a four‑year low against the euro and the yen, saw a modest rebound following the trade‑talks with China. This strengthening of the dollar was driven by a renewed perception that the U.S. economy remains robust, and that the dollar could serve as a safe‑haven asset amid geopolitical uncertainty. However, analysts cautioned that the dollar’s resilience is still limited by ongoing supply‑chain constraints and the potential for global economic slowdown.

Bond Market and Investor Sentiment

In the fixed‑income market, U.S. Treasury yields slipped to their lowest level in two weeks, with the 10‑year yield falling to 3.42% from 3.52% the previous day. The bond market’s softness reflects investor anxiety over the potential rise of inflation and the Fed’s policy stance. The 30‑year yield, in particular, fell to 3.91% as long‑term investors sought refuge in shorter‑dated securities.

Investor sentiment, measured by the AAII Investor Sentiment Index, rose to 51% bullish, the highest level in over a year. While the rise indicates a renewed confidence in the market, analysts highlight the risk of a “bubble” scenario given the high valuations in tech and growth stocks.

Outlook and Risk Factors

The next few weeks will be closely watched for several key developments:

1. Election Dynamics: If Trump formally announces his candidacy, it could create volatility in sectors heavily exposed to political risk, such as defense, energy, and technology.

2. U.S.–China Relations: Any breakthroughs or setbacks in trade talks could alter the market’s perception of global economic health, especially for industries reliant on Chinese manufacturing and consumer markets.

3. Federal Reserve Decisions: The Fed’s next policy meeting will be a turning point. A tightening stance could weigh on tech valuations, while a pause could sustain bullish sentiment.

4. Inflation Trends: Continued inflationary pressure could force the Fed to raise rates, potentially dampening market gains.

5. Corporate Earnings: As companies report quarterly results, any surprises will shape investor expectations for growth and valuation multiples.

Conclusion

Thursday’s trading session reflected a complex interplay of political developments, corporate earnings, and macroeconomic data. While the markets closed at record highs, the backdrop of rising political tension, the continuing impact of the U.S.–China trade talks, and the looming threat of inflationary pressures create a landscape where caution is warranted. Investors are advised to monitor upcoming political announcements, Fed policy updates, and corporate earnings releases to gauge the trajectory of the equity markets in the coming months.