Why are crypto and stocks suddenly rallying right now?

Stocks and crypto are pushing higher because traders are reacting to an upcoming Federal Reserve rate cut and a heavy week of Big Tech earnings. S&P 500 futures rose 0.7%, Nasdaq 100 futures gained 0.9%, and Dow futures added 290 points, or 0.6%, during Sunday evening ￰0￱ rallies are coming after a week of strong gains across major indexes, and traders are now positioning ahead of the Federal Reserve’s October 29 meeting, where the market widely expects a rate ￰1￱ to the CME FedWatch Tool, 96% of investors are betting on rates being cut to 375–400 basis points, while about 3% expect the Fed to slow down and cut to 400–425 basis points ￰2￱ momentum is being paired with anticipation for third‑quarter earnings from the so‑called Magnificent 7: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and ￰3￱ are expecting strong numbers based on earlier Q3 releases across tech ￰4￱ reactions continue The Dow Jones Industrial Average closed above 47,000 for the first time on Friday, ending the session at 47,207.12 after gaining 472.51 points, or roughly 1%.

The S&P 500 finished at 6,791.69, up 0.79%, while the Nasdaq Composite climbed 1.15% to 23,204.87. The move in the stock market spilled into crypto almost ￰5￱ $160 million in crypto shorts were liquidated within the first 30 minutes of the stock futures ￰6￱ and Ethereum saw gains of 1.6% and 2.8% after officials signaled that two countries involved in ongoing tariff threats are unlikely to follow through on extreme tariff and export control ￰7￱ the rally comes after a violent pullback earlier this week, when Bitcoin, which had reached a $125,000 all‑time high, dropped 16% and briefly traded below $105,000. Many altcoins were hit even harder, dropping anywhere from 30% to 80%.

This decline forced leveraged traders to close positions, causing a $19 billion liquidation cascade across crypto ￰8￱ stablecoins were ￰9￱ briefly slipped below $1, while USDT traded at a small ￰10￱ was basically placed on ￰11￱ phrase refers to October historically being a strong month for crypto ￰12￱ year, some traders got caught assuming the same pattern would automatically repeat. meanwhile, traders are also watching U. S.–China trade ￰13￱ to Disruptive Technology analyst Dan Ives, a broader trade deal is being ￰14￱ said , “It appears a much broader trade framework/deal could be on the table this week between US and China which would be a huge groundbreaking moment for the tech sector and markets.” A stabilized trade environment would support Big Tech earnings and could push this stock rally even ￰15￱ $50 free to trade crypto when you sign up to Bybit now