Global markets surge as the US-China Trade Deal framework and expected Fed rate cut boost optimism for economic recovery and trade stability.
TheInterviewTimes.com | New Delhi | October 27, 2025 — Global equity markets surged on Monday as investors cheered a breakthrough in the long-anticipated US-China Trade Deal and growing optimism over a possible Federal Reserve interest rate cut. The latest developments have reignited hopes for easing global economic tensions and renewed growth momentum heading into the year-end.
Trade Deal Framework Fuels Global Confidence
Markets across Asia, Europe, and the United States rallied after Washington confirmed a framework agreement under the US-China Trade Deal talks held in Malaysia.
US Treasury Secretary Scott Bessent announced that the proposed 100% tariffs on Chinese goods were now “off the table,” while China pledged to delay rare earth export restrictions and expand purchases of American soybeans.
Chinese Vice Premier He Lifeng described the talks as “candid, in-depth, and constructive,” calling the progress a positive step ahead of the crucial meeting between President Donald Trump and President Xi Jinping in South Korea later this week. The summit is expected to finalize the US-China Trade Deal framework that could end years of tariff battles and supply chain uncertainty.
Federal Reserve Rate Cut Bets Rise
Expectations for a Federal Reserve rate cut have surged alongside the optimism over the US-China Trade Deal. Markets now price in a 98% probability of a 25-basis-point reduction at the upcoming October 29 policy meeting, potentially lowering the US benchmark rate to 3.75%-4%.
September inflation data, showing a 3% year-over-year rise—slightly below forecasts—has strengthened the case for monetary easing. With employment data delayed due to the ongoing government shutdown, analysts believe the Fed will act preemptively to maintain growth stability amid global trade adjustments following the US-China Trade Deal progress.
Markets Worldwide React Positively
Asian markets led Monday’s rally, with Japan’s Nikkei 225 breaching 50,000 and South Korea’s Kospi surpassing 4,000 for the first time ever—both milestones attributed to optimism over the US-China Trade Deal.
European indices hit record highs, while US futures signaled further strength: S&P 500 up 0.7%, Nasdaq 100 up 1.1%, and Dow Jones futures advancing 300 points.
In India, the NSE Nifty 50 climbed past 25,850, and the BSE Sensex rose more than 600 points, driven by strong foreign inflows as global risk appetite improved following the US-China Trade Deal breakthrough.
Crypto and Commodity Markets Show Mixed Reactions
The wave of optimism surrounding the US-China Trade Deal also spilled into the cryptocurrency space. Bitcoin surged over 3% to cross $113,000, while the broader crypto market capitalization rose sharply amid expectations of reduced tariff uncertainty and a more dovish Fed stance.
In commodities, gold prices dipped as investors moved toward equities, and oil gained slightly on expectations of a rebound in manufacturing and trade demand following the US-China Trade Deal progress.
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Outlook: Trade Truce and Growth Revival
While final details of the US-China Trade Deal are expected to be discussed during the Trump–Xi summit later this week, the framework already signals significant progress on tariff rollbacks, export regulations, and agricultural trade.
If finalized, the US-China Trade Deal could mark a turning point for global markets—restoring supply chain stability, boosting investor confidence, and preventing further escalation of trade tensions.
Combined with an anticipated Federal Reserve rate cut, the new US-China Trade Deal framework could deliver the dual boost global markets have been waiting for—reducing uncertainty and reviving growth momentum worldwide.