Bitcoin News Today: Stocks Hit Records on Fed Optimism Amid Geopolitical and Corporate Tensions

U.S. stocks surged higher on Monday, with the S&P 500, Nasdaq, and Dow Jones all setting records, as renewed investor confidence fueled by easing inflation concerns and anticipation of Federal Reserve rate cuts drove broad-based optimism. The S&P 500 climbed 0.8% to an all-time high, while the Nasdaq rose 1.1% and the Dow gained 1% after a 472-point rally. Year-to-date, the S&P 500 is up 15.5%, the Nasdaq 20.2%, and the Dow 11%, according to an Economic Times prediction.

The market's ascent follows softer-than-expected U.S. inflation data, which reduced fears of prolonged high rates and stoked bets on a 25-basis-point rate cut at the Fed's October meeting. Global equity funds saw $11.03 billion in net inflows this week, the largest since early October, as investors shifted toward risk assets amid hopes for U.S.-China trade progress and easing macroeconomic pressures, according to a Coinotag report. "What we need to see is continued earnings beats and corporate America talking positively about the economy," said Chris Fasciano, chief market strategist at Commonwealth Financial Network, highlighting the importance of corporate guidance in sustaining momentum, as noted in the Economic Times.

Third-quarter earnings season has provided a mixed but generally positive backdrop, with the S&P 500's 12% of listed companies reporting results above expectations as of October 25. However, laggards like Netflix and Texas Instruments underscored lingering sector-specific challenges. Meanwhile, Bitcoin ETF inflows surpassed $4.21 billion in October, with BlackRock's iShares Bitcoin Trust alone absorbing $210.9 million, signaling institutional confidence in digital assets as a hedge against macroeconomic uncertainty, according to a TradingNews analysis.

Political developments also shaped market sentiment. President Donald Trump's meeting with Chinese leader Xi Jinping at the APEC Summit on October 30 is seen as a pivotal event that could influence trade tensions and, by extension, capital flows. Trump has meanwhile faced criticism for his administration's tariff policies, with Canada and the U.S. yet to finalize a trade agreement ahead of a looming deadline. "A breakthrough on tariff relief could boost capital flows into risk assets," analysts noted, though failed negotiations could trigger volatility, as previously reported by the Economic Times.

The Dow's recent performance, however, has been clouded by a securities class action lawsuit alleging misleading statements about its financial flexibility. The stock fell over 17% following a July earnings report that revealed a $0.42 non-GAAP loss per share and a halved dividend, prompting multiple law firms to urge investors to seek legal recourse, according to a PR Newswire release.

Looking ahead, the Fed's policy path remains a key watchpoint. The CME FedWatch Tool shows a 98.3% probability of a 25-basis-point rate cut in October and 91.1% for another in December. Such easing would likely bolster asset prices, particularly for non-yielding investments like Bitcoin, which has stabilized above $110,000 after a mid-October dip. Analysts project that sustained ETF inflows could push Bitcoin toward $120,000–$125,000 by year-end, according to the TradingNews analysis.