Stock Market News for Monday, Oct. 27, 2025: Tech Lifts S&P 500 to Its 35th Record Close of 2025
Wall Street decided to bid up U.S. stocks–small and large– as investors rejoiced over a fragile trade truce between U.S., China and expectations of even lower interest rates.
The three key stock indexes: S&P 500, Dow, and Nasdaq all hit records. The S&P 500, which closed up 1.2%, has marked its 35th record for 2025, the most out of the three. Dow settled 0.7% higher, Nasdaq was up 1.9%.
Gains spilled over to the market’s smaller companies too, with the Russell 2000, representing small-cap stocks, rising a more modest 0.3% in late afternoon trading.
Stocks got a lift from tech giants, like Apple, Alphabet and others. The Roundhill Magnificent Seven fund that encapsulates the big tech stocks was up by more than 2% nearing the session’s end. Qualcomm, a semiconductor stock that’s now entering the AI race, gained $30.5 billion in market value at one point during the day. It ended the day 11% higher.
Tech giants like Amazon and Meta will report their quarterly performance this week. Investors are likely bidding up their stocks as they foresee them delivering on lofty AI and earnings expectations.
Add to that expectations that the Fed will cut rates on Wednesday and positive trends coming out during earnings season are helping the market. For the third-quarter, the year-over-year growth rate for earnings so far is 9.2% for the S&P 500. If this continues, it will mark the ninth consecutive quarter of earnings growth for the index, FactSet says.
“Our sense is estimates were likely too low as tariff policy uncertainty continues to linger, though having less of an impact,” Chris Senyek, chief investment strategist at Wolfe Research says.
By one measure, stock market gains have actually been inferior: Early trends have indicated that companies beating on the top- and bottom-lines have seen a gain of more than 1.3% on average versus the long-term average of more than 1.6%, meaning they are not being rewarded with outsized price action, writes Senyek.
That extra push might be offered this week when President Donald Trump meets Chinese leader Xi Jinping on Thursday. U.S. and China negotiators have paved the way for a potential trade deal ahead of the potential meeting.
To be sure, the government is still shut down and headlines on layoffs at big companies like Nestle and Target are doing the rounds. But the market is more focused on the good news, rather than the bad.
