31 October 2025,06:43
Daily Market Analysis New
31 October 2025, 06:43
Key Takeaways:
*U.S. equities consolidated as bullish momentum faded following a limited U.S.-China trade truce and hawkish Fed tone.
*Despite a 25 bps rate reduction, Powell’s pushback against another December cut curbed investor enthusiasm.
*While most “Magnificent 7” names met expectations, Meta’s 10% post-earnings drop weighed on sentiment.
Market Summary:
GUS equities traded in a subdued and directionless session, with major indices consolidating near all-time highs as bullish momentum tapered. The market’s tone was tempered by a combination of factors, including the limited scope of the US-China trade truce and hawkish-leaning commentary from the Federal Reserve.
The highly anticipated meeting between former President Trump and President Xi yielded a pragmatic reset on bilateral tensions, including tariff adjustments and agreements on rare earths exports. However, the outcome disappointed market participants, as these measures were framed as part of a one-year truce rather than the comprehensive deal many had hoped for, thus failing to provide a fresh catalyst. Furthermore, despite the Federal Reserve’s implementation of a 25 basis point rate cut on Wednesday, Chair Jerome Powell’s subsequent narrative dampened sentiment. He indicated that another rate cut in December was not certain, pushing back against market expectations and further tempering buying pressure. Adding to the mixed landscape, earnings from the “Magnificent 7” technology cohort presented a challenge. While most prominent names delivered results that satisfied the market, Meta Platforms Inc. saw its shares slide more than 10% after its earnings per share fell short of expectations.
While Wall Street may face near-term headwinds from profit-taking and the potential for a technical pullback, the underlying risk-on sentiment is expected to provide buoyant support, likely keeping the path of least resistance biased toward higher levels.
Technical Analysis
S&P 500, H4:
The S&P 500 is experiencing a technical pullback after reaching a new all-time high of 6,928.87. The index is now testing a critical area of support near the 6,875.00 level — a threshold that will be pivotal in determining whether the recent weakness evolves into a deeper correction. A decisive break below this level could expose the index to further downside pressure.
Momentum indicators reflect the easing bullish tone. The Relative Strength Index (RSI) has retreated from overbought territory but remains above the neutral 50 mark, signaling that broader sentiment is still moderately positive. Meanwhile, the MACD histogram has turned negative, indicating that short-term bullish momentum has waned.
A firm rebound from the 6,875.00 support zone would be needed to reassert the prevailing uptrend and restore confidence in the S&P 500’s broader bullish trajectory.
Resistance level: 6925.00, 7000.00
Support level: 6860.00, 6808.00
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