Stocks Fall Pre-Bell as Investors Assess Trump-Xi Meeting Outcome; Powell Casts Doubt on December Rate Cut

07:47 AM EDT, 10/30/2025 (MT Newswires) -- US equity markets were tracking in the red before the opening bell Thursday as traders digest the outcome of talks between President Donald Trump and his Chinese counterpart Xi Jinping, while Federal Reserve Chair Jerome Powell indicated uncertainty around an interest rate cut in December.

The S&P 500 and the Nasdaq declined 0.2% each in premarket activity, while the Dow Jones Industrial Average was off 0.3%. The Nasdaq finished Wednesday higher for the fifth consecutive trading session, while the Dow closed down and snapped a four-day winning streak. The S&P 500 ended nearly flat.

Trump reportedly said he has agreed to lower tariffs on China to 47% from 57% after concluding trade talks with Chinese President Xi Jinping in South Korea on Thursday. Trump said the US reached a one-year trade agreement with China that will be routinely extended, multiple news outlets reported.

"I had a truly great meeting with President Xi of China," Trump said in a post on social media. "We agreed on many things, with others, even of high importance, being very close to resolved."

China agreed to resume purchases of US soybeans, keep rare earths exports flowing, and crack down on the illicit trade of fentanyl, Reuters reported.

Treasury yields were trending upwards in premarket action, with the two-year rate rising 1.6 basis points to 3.6% and the 10-year rate increasing 2 basis points to 4.08%.

On Wednesday, the Fed lowered its benchmark lending rate by 25 basis points, marking a second-consecutive quarter-percentage-point cut as it reiterated concerns regarding the labor market. Powell stressed that a rate cut at the Fed's next meeting in December is not guaranteed.

"In the committee's discussions at this meeting, there were strongly differing views about how to proceed in December," he said in his opening remarks at a post-meeting press conference. "A further reduction in the policy rate at the December meeting is not a forgone conclusion -- far from it."

Fed Vice Chair for Supervision Michelle Bowman is scheduled to speak at 9:55 am ET, while Dallas Fed President Lorie Logan speaks at 1:15 pm.

The US federal government shutdown, which entered its 30th day on Thursday, could cost the world's largest economy as much as $14 billion by the end of 2026 if it stretches to eight weeks, based on estimates released Wednesday by the Congressional Budget Office.

Shares of Microsoft (MSFT) decreased 2.4% pre-bell as the technology giant reported stronger-than-expected fiscal first-quarter results on Wednesday. Meta Platforms (META) dropped 8.6% as the Facebook and WhatsApp parent reported a one-time tax charge of $15.93 billion in its latest quarterly results.

Alphabet's (GOOG, GOOGL) class A and C stock advanced more than 7% each early Thursday, as the Google (GOOG) parent company posted third-quarter results above market estimates. Chipotle Mexican Grill (CMG) tumbled 19% as the burrito chain lowered its full-year comparable restaurant sales outlook.

iPhone maker Apple (AAPL) and e-commerce giant Amazon.com (AMZN) are expected to report their latest financial results after the markets close.

Eli Lilly (LLY) , Mastercard (MA) , Merck (MRK) , S&P Global (SPGI) , Anheuser-Busch (BUD), Comcast (CMCSA) , Roblox (RBLX) , Hershey (HSY), Estee Lauder (EL) , Restaurant Brands International (QSR), Kellanova (K) and Fox (FOX, FOXA) are scheduled to post earnings before the bell, among others.

West Texas Intermediate crude oil slipped 0.6% to $60.15 a barrel before the open. Commercial crude stockpiles shrank more than expected last week, according to the Energy Information Administration on Wednesday.

Gold ticked down 0.2% to $3,992 per troy ounce, while bitcoin decreased 0.6% to $110,114.

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