Nasdaq Jumps as Trump Softens Trade Stance

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Find out what happening right now and get all the pieces of the puzzle on important data activity before the major news sources break the story and see what are the trends
 

•  20 Oct 2025
 

•   INTC  
   
  -0.50%
•   KO  
   
  +3.65%
•   NFLX  
   
  +1.43%
•   TSLA  
   
  -0.34%

Wall Street kicked off the week with renewed optimism, and if you've been holding your breath through the recent trade war turbulence, you can finally exhale. The Nasdaq surged 1.4% toward record highs while investors allowed themselves a rare moment of hope that maybe, just maybe, the chaos has a resolution in sight.

The shift in sentiment didn't come from nowhere. Reports emerged that President Donald Trump is working to exempt dozens of products from reciprocal tariffs with China, with plans potentially expanding to hundreds more items. For anyone who's watched their portfolio swing wildly with each Trump tweet or policy announcement, this feels like the first real sign that someone in Washington understands the pain these tariffs are causing. When you're imposing taxes on goods that aren't even made in America, you're just inflating prices for everyone and delaying the interest rate cuts we desperately need.

Trump himself expressed optimism about reaching a trade deal with Chinese President Xi Jinping, expected to meet later this month in South Korea. Treasury Secretary Scott Bessent added fuel to the rally by noting that tensions with China have "de-escalated." The VIX fear index, which had spiked to 28 points during peak anxiety, has now dropped to around 20. That's the kind of number that lets you sleep at night instead of checking futures at 3 AM.

Yet beneath the optimism lies the persistent background noise: the federal government shutdown entering its fourth week. Economists warn this could dent GDP growth in the current quarter, even if temporarily. It's another reminder that political dysfunction has real costs that show up in your returns.

This week, investors face two critical focal points. Earnings season continues with heavyweight reports from $NFLX, $KO, $TSLA, and $INTC. Netflix closed Friday up 1.3% and added another 2.3% in Monday's trading, riding a 35% gain year-to-date heading into tomorrow's after-hours report. The bar is set high, and the market is watching to see if streaming momentum can justify the rally.

Tesla shares climbed 1.2% to around $444 as Wednesday quarterly report approaches. Wedbush analyst Dan Ives renewed his buy rating with a $600 price target, the highest on Wall Street, citing a return to demand stability after challenging months. For Tesla bulls who've weathered the volatility, this feels like validation.

The second major event arrives Friday with the September Consumer Price Index release, providing crucial insight into inflation trends before the Fed's next rate decision. Every investor knows that inflation data moves markets more reliably than almost anything else right now. Lower inflation means faster rate cuts, which means cheaper borrowing, which means higher valuations across growth stocks.

Among individual movers, Israeli solar company SolarEdge rocketed 8%, touching $40 after delivering triple returns over three to four months. Analysts are raising price targets as European sales improve, though the real question remains when meaningful improvement will reach the US market. Interest rate cuts help since customers finance these large system purchases, making lower rates directly translate to better returns on investment. But there's a shadow growing: $TSLA is accelerating its battery development and inverter connections, gaining meaningful market share in California. The brand power is undeniable.

Nvidia shares dipped slightly despite unveiling the first Blackwell series wafer produced in the US at TSMC's Phoenix facility. This marks the beginning of domestic AI chip manufacturing infrastructure, reducing global supply chain risks. Taiwan Semiconductor jumped 2.3% in response, reinforcing strategic ties with American tech giants.

Boeing gained 1.5% after US regulators approved increasing 737 MAX production from 38 to 42 units monthly. After months of safety struggles, this regulatory approval signals a turning point that could accelerate revenue recovery.

Cooper Companies surged 5.9% following reports that activist investor Jana Partners acquired a significant stake and is pushing for strategic options, including a potential merger of its contact lens division with Bausch + Lomb.

What keeps coming back is the fundamental tension every investor feels right now. The rally feels good, the fear index is dropping, and earnings season could deliver positive surprises. But government dysfunction continues, trade policy remains unpredictable despite recent optimism, and structural risks simmer just below the surface.

The week ahead will test whether this optimism has legs or if we're just experiencing another false dawn before the next wave of volatility. Either way, the investors who understand what's actually driving these moves will be the ones positioned to capitalize when clarity finally arrives.

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