U.S. Stocks Hit Record Highs on U.S.-China Trade Optimism
U.S. Stocks Hit Record Highs on U.S.-China Trade Optimism
October 27, 2025 (local time) – New York's three major stock indexes all closed at record highs today, fueled by positive sentiment surrounding U.S.-China trade negotiations. This rally reflects market optimism stemming from the recent high-level U.S.-China trade talks held in Kuala Lumpur, Malaysia. Investors are focusing on the potential for easing trade tensions between the two nations, bolstering their risk appetite. In particular, the possibility of the U.S. rolling back additional tariffs and China considering easing export controls on rare earths have injected positive momentum into the market, driving the index gains.
The stock market rally was underpinned by comments from U.S. President Donald Trump and positive assessments from Treasury Secretary Scott Besant. President Trump told reporters aboard Air Force One that he believes a final agreement is achievable, expressing strong commitment to reaching a deal. Treasury Secretary Besant also indicated progress, stating that both countries are approaching an agreement in principle. These statements from high-ranking officials provided stability to the market and further boosted investor confidence. However, when asked on October 27, 2025, about the possibility of concluding U.S.-Korea trade negotiations by the 29th, Secretary Besant responded, "I don't think so yet," adopting a more cautious stance on trade talks with South Korea.
As U.S.-China trade negotiations progress positively, the possibility of the U.S. withdrawing its plan to impose additional 100% tariffs on Chinese imports is being raised. This is considered a significant advancement towards resolving the tariff issue, a major source of conflict between the two countries. China is also reportedly considering easing export controls on rare earths and magnetic materials. Rare earths are essential raw materials for advanced industries, and China holds significant influence in the global rare earth market. Therefore, China's easing of export controls on rare earths is expected to contribute to stabilizing the global supply chain. These moves towards concessions and compromises between the two nations are increasing expectations of a trade deal and are acting as a positive signal to the market.
Meanwhile, President Donald Trump emphasized the need for cooperation in the shipbuilding industry during a meeting aboard Air Force One on the same day, expressing expectations for cooperation with South Korea in this sector. USTR Representative Jamison Greer stated that "Korea has excellent plans to invest in the United States in the shipbuilding sector, and they have already done so," offering a positive assessment of South Korea's investment in the U.S. This can be interpreted as an intention to encourage further investment in the U.S. by South Korean companies, aligning with the U.S.'s manufacturing resurgence policy. In particular, the shipbuilding industry is a key sector for the U.S., and the strategy seems to leverage South Korea's superior technology and capital to strengthen the competitiveness of the U.S. shipbuilding industry. However, specific cooperation measures have not yet been clearly identified, and further discussions between the two countries are expected.
