Global markets rebound: Tech stocks rally and U.S.-China truce fuel November optimism


World markets kicked off November with fresh gains, driven by advances in the technology sector and a more conciliatory climate between Washington and Beijing. Investors are looking to the future with renewed confidence, despite lingering uncertainties over interest rates and China’s economic outlook.

Global equities started November with strong momentum, suggesting that the rally that began seven months ago may still have room to run. The MSCI All Country World Index rose for the seventh time in eight sessions, while Asian shares gained about 0.5%. Futures on the S&P 500 extended their gains after a week of strong corporate earnings, as investor enthusiasm outweighed concerns about the concentration of profits among tech giants. A positive opening was also expected in Europe, although Japanese markets and the U.S. bond market remained closed for holidays.

Commodities were also in the spotlight: gold fluctuated after an initial drop, following Beijing’s decision to abandon plans for permanent fiscal stimulus. WTI crude rose 0.6% after OPEC+ suspended production increases, while iron ore fell amid worries about Chinese demand.

Despite cautious remarks from Federal Reserve Chair Jerome Powell—who stressed that a December rate cut is far from certain—stocks hit new highs. On the geopolitical front, China signaled a thaw in relations, announcing plans to suspend export controls on rare earths and to end investigations into U.S. semiconductor companies.

Analysts note that after an October marked by political tensions and high valuations, confidence in U.S. corporations and expectations of a more accommodative monetary stance have prevailed. The technology sector continues to lead the advance, driven by the expansion of artificial intelligence and solid balance sheets.

Since the start of the year, the S&P 500 has climbed nearly 40% from its April low, while the Nasdaq 100 has recorded its best string of monthly gains in eight years. According to some strategists, the U.S. index may pause only in the face of major negative surprises. Even the cautious tone in recent talks between Xi Jinping and Donald Trump has not dampened investor optimism, supported by strong earnings from giants like Apple and Amazon.

In fixed income markets, U.S. Treasury futures held steady, while Australian yields rose ahead of the Reserve Bank’s policy decision. The dollar showed little movement as investors awaited new comments from Federal Reserve officials that could shed light on the future of U.S. monetary policy.

Andrea Pelucchi