S&P 500 futures are now more than 130 off the lows in a massive reversal of earlier losses. Futures are now up 39 points, in part because Trump keeps repeating that he expects China will be 'fine'. This article was written by Adam Button at investinglive.com.

Things coming along pretty wellZelensky also said that he's confident with US help he can stop the war and that it's most important for Ukrainians to have security guarantees. Some times these things can happen quickly. The battlefield has stagnated and the costs are high. Maybe this really is the end? If so, I'd imagine the euro and European stocks are one of the cleanest trades and I wouldn't want to be long oil. This article was written by Adam Button at investinglive.com.

A report earlier today indicated that Treasury Secretary Scott Bessent will speak by phone today with Chinese Vice Premier He Lifeng to discuss the ongoing trade negotiations. It's not clear what time that was scheduled for as it would have had to been early this morning Washington time or late this evening, in order for the time zones to align.The high-level talks are a good sign that there is at least a will to make progress and de-escalate. Trump today said “I think we’re going to do fine with China.”I'd assume the market is anticipating some positive developments on the weekend but we never priced in any real trouble either, given that Trump TACO'd on the weekend. This article was written by Adam Button at investinglive.com.

At times, the Fear & Greed index is a somewhat-useful indicator of market sentiment, particularly at extremes. But somehow it's showing 'extreme fear' at the moment despite the S&P 500 being just 1.8% off the all-time high set just last week.On the face of it, that should be a strong buy signal for stock markets. What it's picking up on is terrible breadth in the stock market, a swing in the put-call ratio, the FIX at 23.7, falling Treasury yields and junk bond demand. The problem is that these numbers are stochastic and we're coming off a period of euphoric returns so they're benchmarked against an impossible metric. This article was written by Adam Button at investinglive.com.

The Fed's Musalem:I could support a path with another cut if more risk to jobs emerge and inflation remains containedFed should not be on a preset course, and followed balance approachSees limited space before rate cuts would make policy accomodativeImportant for the Fed to be cautious right nowDoes not make decisions on one data point amid broader shutdown.Important for the Fed to go meeting by meeting on policy deliberationWeare in a particulary uncertain momentIt is premature what to say comes with FOMC meetings after OctoberTariff impact still flowing into the economyTariffs will work through the economy into the middle of next yearRetailer are feeling increased pressure to pass on tariffsConsumers facing firms facing more trouble passing throuh tariffsPurchasing power still an issue for many AmericansInflation is still a very big thing for consumers it is really important for the Fed to get inflation back to 2%.Some are saying non-interest rate related costs matter more right now.Tariffs don't appear to be passing through to services.Services inflation has been at high level, need more work to lower.He is totally committed to a target of 2%, believes Fed supports the same.By 2nd half of 2026 will move back toward 2% inflation, but needs policy to lean against inflation.Business contacts say that the jobs market has cooled.Labor market is not a source of inflation. The job market is near full employment right now.Job gains have been affected by immigration changesjob market breakeven is between 30,000 and 80,000.We could see negative payroll prints but unemployment may not move.It is not seeing any increase in layoffs.We are not in imminent problem for job market but risks have increased.Monetary policy is somewhere between restrictive and neutral.Financial conditions are accommodative right nowEquity prices are not a key part of thinking about the economy.He always have to worry about credit market risks.Credit conditions are really good now.Low probability that the Fed leader will not be qualified This article was written by Greg Michalowski at investinglive.com.

BOE's Greene is speaking and says: Core and services inflation are going sideways.Indications are in disinflation process is slowing. Concerned about second-round effects of inflationFirms more sensitive to upside inflation surprises.Policy not meaningfully restrictiveShould slow down rate cutting cycleSlack has opened up in the labor market making wage part of wage price spiral less likely. Latest rising UK unemployment is in line with what we were expecting.We should not cut rates every quarter, but rate cutting cycle not over.The cautionary comments point to more steady policy with still a downside in rate bias. This article was written by Greg Michalowski at investinglive.com.

The latest Atlanta Fed GDPNow model for Q4 is at 3.9%, up from 3.8%. The problem with the model is that it depends on economic data and we're not getting much of it now, so everyone is pretty much flying blind. They did pick up some dribs and drabs."After yesterday’s monthly treasury statement report from the Treasury's Bureau of the Fiscal Service, the nowcasts of third-quarter real personal consumption expenditures growth and real gross private domestic investment growth increased from 3.2 percent and 4.0 percent, respectively, to 3.3 percent and 4.4 percent, while the nowcast of third-quarter real government expenditures growth decreased from 1.8 percent to 1.5 percent."The next update isn't scheduled until Oct 27 and hopefully we have some real data by then. This article was written by Adam Button at investinglive.com.

Earlier today, the EURUSD pushed higher, making a strong test of a key resistance level: the 50% midpoint of the September high-to-October low range. This level is located at 1.17297, and the high of the day came in just shy of it at 1.17285.Following this resistance test, steady selling pressure entered the market. The subsequent move to the downside first tested an intermediate swing area between 1.1680 and 1.1685, which also contains the 38.2% retracement of the aforementioned range.The price action continued lower, moving toward another critical support zone defined by the swing area of 1.16449 to 1.16596. Crucially, the 100-day Moving Average (MA) sits right within this zone at 1.16484.Buyers have actively defended this lower area, with the low reaching 1.1657—holding above the 100-day MA. This defense has led to a modest bounce, and the pair is currently trading near 1.1663.OutlookFor Sellers: Control requires a decisive break and close below the 100-day Moving Average (1.16484).For Buyers: Dip buyers will continue to use the 100-day MA as a floor for a potential rotation back toward the 38.2% retracement/swing area (1.1680-1.1685).The 50% midpoint (1.17297) remains the absolute key barometer and defining hurdle for any sustained breakout to the topside. This article was written by Greg Michalowski at investinglive.com.

Sector Overview: Winners and LosersConsumer Cyclical & Automotives ?: Tesla (TSLA) surged by 2.06%, highlighting robust gains in the automotive sector. This boost suggests bolstered investor confidence, possibly due to optimism around sustainable vehicle sales or recent positive announcements.Technology ?: In the semiconductor space, Broadcom (AVGO) fell by 2.12%, marking a significant sector decline. Despite this dip, Nvidia (NVDA) gained 0.72%, signaling resilience amid broader pressure.Healthcare ?: Eli Lilly (LLY) witnessed a notable drop of 2.41%, urging caution as investors react to market forces or sector-specific developments. This sector marked one of today's biggest losses.Financials ?: Increasing trends in payment systems as Mastercard (MA) climbed 1.61%, alongside Visa (V), which is up by 1.39%, showcasing strength in credit services.Utilities & Energy ?: Exxon Mobil (XOM) increased by 1.21%, driven by stable energy prices and optimism about future prospects.Market Mood and TrendsToday’s market displays a mixed sentiment as investors navigate through sector-specific movements. While some sectors like consumer cyclicals and credit services show promising growth, healthcare and specific technology stocks are dragging behind. The overall mood signals cautious optimism, underscored by volatile responses to recent corporate announcements and macroeconomic policies.Strategic RecommendationsInvestors should adopt a balanced approach by diversifying across thriving industries like automotive and credit services while closely monitoring the semiconductor and healthcare sectors for potential buying opportunities. Revisiting portfolio allocations in light of recent energy sector strength could also be advantageous.Stay updated with market analytics and adjust your strategies at InvestingLive.com for continuous insights and opportunities. ?? This article was written by Itai Levitan at investinglive.com.

Gold has run into some heavy selling after the US equity open, with prices falling $100.The selling accelerated after the break of yesterday's low of $4278.There is no clear catalyst for the drop but gold is extremely technically overbought and there may be some market participants looking to take profits ahead of the weekend.It's way too early to say that gold's parabolic move has busted. I'd imagine there will be plentiful buyers on dips at $4000 with perhaps some earlier support at $4090. I've been repeatedly surprised at how shallow dips have been in this incredible run up. This article was written by Adam Button at investinglive.com.

The USDCAD technical picture remains largely unchanged. On Monday, the pair pushed above the 38.2% retracement of the 2025 trading range and also broke above a key swing area between 1.40106 and 1.40268. Since then, the price has held above that zone, keeping buyers in control of the short-term bias.However, upside momentum has been capped, with the Tuesday high at 1.40798 marking the current ceiling. Stronger resistance lies ahead between 1.4149 and 1.4183, an area that also includes the 50% midpoint of the 2025 range.For now, the market is in a tug-of-war between buyers defending support and sellers leaning on resistance. A break below 1.4010 would likely disappoint buyers and shift short-term control back to the sellers. Conversely, a move above 1.40798 could unlock fresh upside momentum and target the next resistance cluster near 1.4150–1.4183. This article was written by Greg Michalowski at investinglive.com.

Comments from the WTO leader:World trade system has been undermined by US tariffs and bilateral deals, but still proving resilientSays she agrees WTO needs reforms, should use this crisis to make organization more flexible, faster and more efficientSays very worried about spike in US-China trade tensions, hopes they de-escalateIt's hard to imagine what role the WTO can even play in the future. This article was written by Adam Button at investinglive.com.

A report early this week in the WSJ highlighted that China doesn't think Trump will let the US stock market fall in a trade war and that's tough to argue with given his comments today. On Fox Business he called 100% tariffs on China unsustainable and repeatedly said everything will be fine while also indicating he didn't know what would happen.That's been good enough to lift US stock futures back to flat on the day. S&P 500 futures had been 80 points lower a few hours ago and are now nearly flat. This article was written by Adam Button at investinglive.com.

The USD is little changed vs the major currencies to start the NA session. Once again there will be zero economic releases. Today is the last day for Fed officials to speak as the Fed enters its blackout period after today. A look at the USDs change vs the major currencies shows:EUR -0.02%JPY -0.19%GBP -0.04%CHF -0.25%CAD -0.12%AUD unchangedNZD -0.10%In the video above, I take a technical look at 3 of the major currency pairs - the EURUSD, USDJPY and GBPUSD. What do the charts tell traders as the week comes to an end for each.In other news today, geopolitical news remains high on the list of market influences. Yesterday President Trump spoke with Russia's Putin ahead of his meeting with Ukraine's Zelenskyy, and both leaders indicated that they hope to meet soon.Today, Russia’s Kremlin said that several key issues must still be addressed by Foreign Minister Lavrov and U.S. Secretary of State Rubio before a summit between President Trump and President Putin. The meeting could occur within the next two weeks or later, with both sides stressing that no time should be wasted. During their recent communication, Putin reaffirmed Russia’s openness to a negotiated settlement in Ukraine and reiterated Russia’s stance on the delivery of Tomahawk missiles to Ukraine.The other key relationship is with China, as both countries turn up the heat. Yesterday USTR’s Greer said China might be looking to decouple from the U.S., which could pose challenges given that rare earths remain a critical piece of the U.S. commodity puzzle. At the same time, China is also heavily reliant on the U.S. to drive its economy. This morning, President Trump said he and China’s Xi will meet in two weeks, adding that the high tariffs on China “will not stand” and that he believes “we will be fine” with China.Meanwhile, the U.S. government shutdown—now in its 17th day—continues, with President Trump threatening to permanently shut down Democratic programs as leverage to reach an agreement.White House Economic Adviser Kevin Hassett also spoke today, addressing the broader situation. He expressed confidence in the U.S. economy, stating that there is no reason why 4% growth cannot be sustained. Hassett said that the Federal Reserve’s three rate cuts are a good start in supporting continued expansion. On trade, he emphasized that the U.S. is not in a trade war with China and that he is optimistic both nations can restore a mutually beneficial relationship, though he acknowledged disappointment with some of China’s actions. He added that while China currently holds some leverage, escalating tensions would hurt them more.On fiscal matters, Hassett warned that if the government shutdown continues beyond the weekend, President Trump is likely to ramp up actions. In discussing credit markets, he noted that banks have ample reserves, optimism can keep markets ahead of the curve, and investors should recognize that a new administration is shaping policy direction.The broader US stocks are lower in the morning snap shot (but above earlier lows) after giving up earlier gains yesterday and closing down on the day. The Nasdaq is the laggard today.Dow up 36 pointsS&P -7.07 pointsNasdaq -73 pointsIn the US debt market yields are higher. Yesterday the 10 year yield closed below the 4% and at the lowest levels since October 2024:2 year yield 3.444%, +1.9 basis points5 year yield 3.578%, +2.1 basis points10 year yield 3.993%, +1.7 basis points30 year yield 4.600%, +1.7 basis pointsBitcoin continues to get hammered. The person a $-2369 or -2.19% at $105,837.Crude oil is also lower once again with the price trading below the $57 level all the way down to $56.15. The low price for 2025 is up $55.15. The current price is trading at $57.07 down $0.41 or -0.73%.And surprisingly, Gold is down on the day. The current price is down -$31.82 or -0.73% at $4293. Nevertheless the decline did not come for the price reached a new record high at $4380.79 earlier today. Looking at the hourly chart, the price is testing the low of a channel trendline. The high price reached earlier today, extended above the high of the channel, but failed. This article was written by Greg Michalowski at investinglive.com.

Trump on Fox Business:China is always looking for an edgeI don't know what's going to happenWe're going to meet in a couple weeksOn China tariffs, says they're not sustainableChina forced me to do thatWe're going to do fine with ChinaWe have to have a fair dealThis sounds like a guy who is ready to TACO again. This article was written by Adam Button at investinglive.com.

Headlines:Risk appetite picks up as Trump plays down feud with ChinaBitcoin slumps to fresh four-month lows, technical trouble continues to brewECB's Simkus: I like the idea of a risk management cutBoE's Pill: A more cautious withdrawal of monetary policy restriction may be appropriatePBOC governor says will continue to implement appropriately loose monetary policyBOJ's Uchida: Japan economy recovering moderately, albeit with some weak signsJapan's Nippon Ishin party co-leader says made big progress in talks with LDP todayEurozone September final CPI +2.2% vs +2.2% y/y prelimMarkets:CHF leads, EUR lags on the dayEuropean equities lower; S&P 500 futures down 0.3%US 10-year yields up 1.2 bps to 3.988%Gold down 0.8% to $4,292.92WTI crude oil down 0.1% to $57.38Bitcoin down 1.8% to $105,946For the better part of European morning trade, things were quiet with the risk mood looking rather dour after the selloff in stocks yesterday. That carried over to today with US-China trade tensions also seemingly on edge, awaiting further developments. And we got that with US president Trump officially confirming a meeting with China president Xi Jinping in two weeks' time.Trump also sounded less worried and angry about the whole China situation, reacting calmly in an interview with Fox Business. He said that he thinks that "we'll be fine with China" and that high tariffs were "unsustainable", adding that he doesn't see them lasting but wouldn't rule it out entirely.So, that's leading to a stirring bounce in risk assets in the handover to US trading here now. S&P 500 futures slumped all throughout the session, being down by around 1.3% before rebounding now to pare losses down to just 0.3% on the day. Meanwhile, 10-year yields in the US also bounced back up from lows around 3.94% to around 3.98% at the moment.In the major currencies space, the dollar also trimmed early losses with USD/JPY in particular coming back up strongly from 149.40 earlier in the session to climb back above 150.00 now. The pair is still down 0.2% on the day but it's a win for the dollar, at least for now, as we look to US trading.EUR/USD was just marginally higher but is now trading flat at 1.1690 while GBP/USD is also just holding little changed at around 1.3437 currently. Meanwhile, AUD/USD cut losses from around 0.6450 to 0.6485 now - also trading flat on the day.As for European stocks, the risk rebound isn't translating to much of a meaningful bounce here overall. Investors are having to play catch up to Wall Street losses overnight as well and the DAX is still keeping down by over 1.6%. France's CAC 40 index is at least paring a chunk of its losses, being down by just 0.2% on the day currently.Elsewhere, gold enjoyed a solid run up earlier in the day after a volatility spike in Asia. The precious metal fell to $4,280 during Asia trading before rallying back up to $4,370 levels in European trading. The momentum held for a while before it slowly waned and has now completely dissipated as the risk mood picks up. Gold is now down 0.8% to $4,292 as profit-taking and exhaustion also factors into the equation.To round things off, we also had crypto action with Bitcoin slumping to fresh four-month lows on the day. The cryptocurrency briefly fell below $104,000 but is still threatening a break under its 200-day moving average for now. It will be the first time it drops below both key daily moving averages since April, so there's some technical danger to be wary of before the weekend. This article was written by Justin Low at investinglive.com.

We're not at war with ChinaHave been disappointed in some of China's actionsChina has a little bit of leverage right now but would hurt them moreDon't think they are really going to do itInteresting that he admits China has more leverage now. Risk assets jumped half an hour ago on an excerpt from a Fox News interview where Trump mentioned that they are going to be fine with China. Also, when asked if high tariffs against China will stand, he answered "no, but they could stand". Those comments are not new though as that's what he said on Sunday and what other US officials already told us. We remain in a limbo for now with both sides avoiding further escalation ahead of the APEC summit in South Korea on 29-30 October, where Trump is expected to meet with Xi. This article was written by Giuseppe Dellamotta at investinglive.com.

Easy come go, easy go come? Trump is out speaking and saying that he thinks things will be fine with China and when asked if the high tariffs against China will stand, he responded with a "no, but it could stand". It's not exactly clear-cut but that's enough for dip buyers to work with. And that's leading to a bounce with S&P 500 futures now cutting losses to just 0.3% on the day after having been down by over 1% for the most part in European morning trade.A meeting with Xi Jinping is also confirmed and that's helping to soothe market expectations. With the two leaders set to meet in South Korea in two weeks' time, one can reasonably expect both camps to be playing nice and "work things out" before the meeting. That even if it will all just be for show as it always has been.Trump is reaffirming that they still need "a fair deal" and his tone in the interview isn't exactly really upbeat. However, it's not to say that he's coming down hard on China with him just saying that tariffs are "not sustainable" and that "they are what they are".In any case, don't be surprised if we circle back to the same round of developments and conversation again in the coming months next year. This article was written by Justin Low at investinglive.com.

Inflation and growth risks are more tilted to the downsideMore euro appreciation is possible2028 price forecast is important for the next ECB moveSimkus has been a dovish member for some time and he's not deviating from that stance here. In any case, the vast majority of the governing council doesn't see the need for another cut. This article was written by Giuseppe Dellamotta at investinglive.com.

The risk selloff since last week is starting to resurface and in the case of cryptocurrencies, the pain is starting to deepen. For Bitcoin, the drop on Friday last week fell short of testing the 200-day moving average (blue line). That before a bounce earlier this week stalled around its 100-day moving average (red line) instead. But amid the latest selloff today, we're starting to see the technical lines crack and that could spell more trouble for the cryptocurrency heading into the weekend.Bitcoin now trades to fresh lows in four months, dropping just below $104,000. But more importantly, price is threatening a firm break below its 200-day moving average as circled above. This will mark the first time that the cryptocurrency trades under both its key daily moving averages since April.And amid the surging run in the past six months where it posted as much as 65% gains, are we due a more significant correction?With the selloff in stocks still running today, this will be a spot to watch as the hurt in risk sentiment is very much amplified in cryptocurrencies.On a side note, if you've been invested in things like collectibles since the summer, this will be a good litmus test to see how much of an impact cryptocurrencies do have on the spending appetite in that space. This article was written by Justin Low at investinglive.com.