U.S. Japan Tech Pact Sets Cooperative Agenda as Fed Meeting Opens

At the opening bell, stocks tilted higher: the Dow Jones Industrial Average rose +294.61 (0.62%) to 47,839.2, the S&P 500 added +22.15 (0.32%) to 6,897.31, and the Nasdaq Composite gained +131.15 (0.55%) to 23,768.6, while the Russell 2000 slipped -1.00 (-0.40%) to 249.30. In commodities, Crude Oil Dec ’25 (CL=F) traded at $60.60 (-1.16%), and Gold Dec ’25 (GC=F) was at $3,941.20 (-1.95%).

Investors are reviewing geopolitics and U.S. policy as Washington and Tokyo unveiled a technology cooperation framework while the Federal Reserve kicks off a closely watched meeting that concludes Wednesday. The White House said a Memorandum of Cooperation signed in Tokyo on Oct. 28 aims to “strengthen collaboration” across strategic disciplines, from AI and semiconductors to quantum, telecom, fusion energy, and civil space, laying out parallel work on standards, export promotion, and supply-chain resilience.

President Donald Trump, praised the alliance and pledged unwavering support for Japan. “I want to just let you know anytime you have any question, any doubt, anything you want, any favors you need, anything I can do to help Japan, we will be there. We are an ally at the strongest level,” he said, adding, “We’re going to do tremendous trade together… stronger than ever before.”

Bloomberg characterized the accompanying trade and critical-minerals papers as ill-defined, noting language about “swift and continued efforts” and coordination on permitting, financing, and mapping—signposts that the heavy policy lifting still lies ahead. The president also met families of Japanese citizens abducted by North Korea, signaling continued attention to regional flashpoints even as economic ties deepen.

Stateside, the Fed is holding its two-day meeting with futures implying roughly a 25-basis-point reduction on Wednesday and heightened sensitivity to labor-market risks as the central bank edges toward the end of quantitative tightening. Markets will analyze the FOMC Statement for guidance on balancing inflation progress and employment fragility. That's Fed-speak for the trade-off the Fed manages between price stability and jobs.

Earnings keep the tape busy. Wednesday, Oct. 29, brings Boeing, Caterpillar, and Verizon before the bell, followed by Alphabet, Meta, and Microsoft after the close—a lineup poised to steer sector leadership. As a leading hyperscaler, Meta's capex is setting the pace for global infrastructure demand and fueling the AI boom powering data-center build-outs and chip spending worldwide.

Healthcare set an early tone: UnitedHealth reported Tuesday morning Q3 adjusted EPS of $2.92, raised full-year guidance to at least $16.25, and posted a medical-loss ratio of 89.9%, better than feared. While Optum Health margins remain pressured by senior-care costs and reimbursement dynamics, more substantial cost control and cash generation helped mend sentiment in the notes reviewed.