Trade Truce Ignites Rally — But Is It Built to Last?

Author

FX Rocket Profits
October 30, 2025

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Trade Truce Sparks Risk-On Rally

Markets surged Monday as news of a U.S.–China trade framework lifted risk appetite across the board. Stocks hit fresh all-time highs, led by tech, while gold tumbled below $4,000 and the dollar weakened.

The new framework — forged in Malaysia over the weekend — paused tariff escalations, delayed China’s rare earth export controls, and revived soybean purchases. Traders cheered the diplomatic progress, pricing in lower geopolitical risk and stronger global growth.

But as Babypips reminds us, this is a framework, not a final deal. With Trump and Xi set to meet October 30 in South Korea, markets remain vulnerable to headline risk.

The theme? When diplomacy delivers, risk rallies — but implementation is the real test.

⚡Daily Broad Market Recap – October 27, 2025

  • S&P 500 surged 1.3% to a record 6,879; tech led gains.

  • Gold dropped 3% to $3,987, breaking below $4,000.

  • Bitcoin rose 3.6% to $114,787; oil settled at $61.20.

  • USD traded mixed; Treasury yields climbed on reduced haven demand.

🔥What the U.S.–China Trade Framework Really Means

  • Tariff hikes paused; rare earth export controls delayed.

  • China resumes soybean purchases; TikTok deal finalized.

  • Traders embraced risk-on sentiment, but key details remain unresolved.

This issue blends diplomatic breakthroughs with market momentum. As traders celebrate the trade truce and reposition for growth, the message is clear: optimism drives rallies — but follow-through drives conviction.

Happy Trading!

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