U.S. stocks hit new highs! Nvidia and Microsoft-OpenAI deals boost market sentiment, Bitcoin is expected to welcome the next round of pump.

Against the backdrop of market expectations that the Fed will announce its interest rate decision on October 29, Wall Street sentiment is high. On Tuesday, the Dow Jones Industrial Average rose by more than 150 points, with both the S&P 500 Index and the Nasdaq hitting all-time highs. The positive outlook from Nvidia's CEO and potential deals between Microsoft and OpenAI provided major momentum for US stocks, driving large tech stocks higher, with Apple's market capitalization surpassing $4 trillion. Analysts expect that influenced by positive developments in US-China trade negotiations, potential rate cuts, and better-than-expected earnings reports, the US stock market and the broader crypto assets market, including Bitcoin, are likely to experience explosive growth.

Macroeconomic Positive Factors Gathering: Fed's Rate Cut Expectations and Tech Giants Driving Wall Street to New Highs

As the Fed's interest rate decision approaches on October 29, market sentiment for risk assets has generally risen. The Dow Jones Industrial Average rose more than 150 points before the close on Tuesday, the benchmark index S&P 500 increased by 0.4%, hovering above 6,800 points, and the tech-heavy Nasdaq Composite also gained 0.8%, with all three major indices reaching all-time highs. Tuesday's rally continued the upward momentum stimulated by news of a potential trade agreement between China and the U.S. on Monday, reflecting the market's sustained optimistic expectations.

Tech Giants Nvidia and Microsoft-OpenAI Become Major Drivers in the Market

The strong performance of large tech stocks is a key factor driving the US stock market to new highs. Nvidia (, Microsoft ), and Apple ( have all seen their stock prices rise, reflecting significant developments within their respective ecosystems.

• Nvidia )Nvidia('s Positive Outlook: Artificial intelligence chip manufacturer Nvidia's CEO Jensen Huang emphasized the company's positive prospects for a “turning point.” Additionally, Nvidia's significant investment of $1 billion in Nokia further boosted the intraday rise, with NVDA's stock price up over 3%.
• Microsoft-OpenAI Deal: The market reacted positively to news of a potential Microsoft-OpenAI deal, which could prompt the flagship artificial intelligence startup to transform into a nonprofit organization, driving Microsoft’s stock price to rise over 2%.
• Apple ) Apple ( crosses a market capitalization of $4 trillion: Apple’s stock price has risen, pushing its market capitalization above $4 trillion, mainly due to strong expectations for demand for the iPhone.

Outlook for Risk Assets: US Stocks and Bitcoin Welcome the Rise Cycle

With the convergence of multiple positive factors, Wall Street is expected to welcome a surge. The upcoming earnings reports from large tech companies, the optimistic prospects of Sino-US trade negotiations, and the Fed's potential interest rate cut decision together create a bullish tailwind.

Analysts expect a similar optimistic outlook for Bitcoin and the broader Crypto Assets market. As gold begins to give back some of its impressive rise in the past few weeks, there is a trend for market funds to shift towards higher-risk assets. With expectations of improved macro liquidity and sustained institutional demand, Bitcoin is likely to replicate the strength of U.S. stocks and continue to challenge higher price levels. Investors are closely monitoring the Fed's decisions, which could serve as a catalyst for the next bull market in risk assets.

Conclusion

The positive dynamics of tech giants like Nvidia and Microsoft-OpenAI, along with strong expectations for interest rate cuts by the Fed, have injected powerful confidence into the global risk asset market. The U.S. stock market has reached a historical high, reflecting not only the market's optimistic expectations for corporate profitability but also indicating that macro liquidity is improving. This positive macro environment is a huge boon for Bitcoin and the Crypto Assets market. Investors should pay attention to the Fed's decisions and the earnings reports of major tech companies to confirm the sustainability of this bull market sentiment.