Wall Street Rallies as Trump Softens China Stance

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•  13 Oct 2025
 

•   ABT  
   
  -0.63%
•   ALB  
   
  -2.49%
•   ASML  
   
  +0.47%
•   AVGO  
   
  -0.25%
•   AXP  
   
  -0.15%

Wall Street is experiencing a strong rebound today with the three major indices climbing nearly 2%, led by the Nasdaq, following the sharpest decline since April. The rally comes as the Trump administration signals openness to negotiations with China after threatening an additional 100% tariff on Chinese goods.

The shift in tone from President Donald Trump and senior officials has sparked renewed optimism among investors who are beginning to believe the trade war may evolve into negotiations rather than a prolonged confrontation. "There's a sense that these measures are part of a mutual bargaining tactic," wrote Jim Reid, head of macro research at Deutsche Bank. However, he cautioned that volatility is expected to continue, particularly as earnings season approaches.

Amid the heightened tensions and the search for safe havens, gold has surged to a new record high above $4,120 per ounce. Trading in U.S. Treasury bonds is suspended due to Columbus Day, but Treasury futures indicate slight declines. The gold rally reflects investors' continued flight to assets considered safe during times of uncertainty.

The cryptocurrency market is recovering after wiping out $19 billion in value. Following a crash that cost leveraged traders heavily, digital currencies are bouncing back on reassuring statements from Trump and his vice president. Bitcoin is trading around $115,000, though analysts warn that risks haven't disappeared but merely been postponed.

In a major development, $AVGO Broadcom has signed a multi-year agreement with OpenAI to develop custom chips, hardware, and networking infrastructure. The partnership includes building computational infrastructure with 10 gigawatts of capacity by the end of 2029. Broadcom's stock is soaring 10% on the news, positioning the company at the center of the AI revolution while giving OpenAI direct control over its core technology.

Quantum computing stocks are flying high today, with $RGTI Rigetti Computing and $QBTS D-Wave Quantum both jumping 17%, $OKLO Oklo up 14%, and $IONQ IonQ gaining 13%.

The star performer of the day is $MP MP Materials, the rare earth elements mining company, which is rocketing 25% after gaining 8.4% on Friday. Trading at a record high of $98, the stock has posted a stunning 402% gain year to date. The surge follows a significant investment from the U.S. Department of Defense as part of efforts to secure American independence in rare earth elements. The company produces neodymium and praseodymium oxides, critical components in magnets for high-tech products like electric vehicles and F-35 fighter jets. Other sector players are benefiting too, with USA Rare Earth jumping 22%, $METC Ramaco Resources up 6.1%, and lithium miner $ALB Albemarle gaining 6.1%.

$TSLA Tesla is rising 3% after falling 5.1% on Friday. The company launched new, more affordable versions of the Model 3 and Model Y priced under $40,000 this week, attempting to boost sales that have suffered from increased competition and political concerns in Europe.

Chinese tech stocks traded in the U.S. are recovering sharply, with $BABA Alibaba jumping 4.9% after plunging 8.5% Friday, $BIDU Baidu up 4.2%, and $JD JD.com adding 2.5%.

On the downside, $BYND Beyond Meat is plummeting 47% to $1.10 after announcing the issuance of 316.2 million new shares as part of a debt-to-equity conversion. While the move is designed to ease the company's debt structure, it creates significant dilution for existing shareholders. The company is also exchanging $1.11 billion in bonds for just $196.2 million in new bonds. The stock has now fallen over 70% year to date.

$FAST Fastenal disappointed with third-quarter earnings of 29 cents per share, a penny below estimates, sending the fastener manufacturer's stock down 3.9%.

Meanwhile, $BE Bloom Energy surged 28% in a single day after signing a historic deal with Brookfield. After tripling earlier this year, the stock continues its impressive run, though analysts at Jefferies suggest the valuation may be getting stretched.

JPMorgan Chase CEO Jamie Dimon unveiled a $1.5 trillion decade-long initiative to strengthen American independence through investments and financing of critical industries, from supply chains to defense technologies. Dimon emphasized the goal is to reduce dependence on China and re-establish America's economic and strategic resilience.

This week promises to be packed with quarterly earnings reports. All major banks are set to report, including $JPM JPMorgan Chase, $WFC Wells Fargo, $BAC Bank of America, $GS Goldman Sachs, $MS Morgan Stanley, and $C Citigroup. Other heavyweights reporting include $BLK BlackRock, $ASML ASML, $TSM Taiwan Semiconductor, $AXP American Express, $UAL United Airlines, $DPZ Domino's Pizza, $ABT Abbott Laboratories, $SCHW Charles Schwab, $ISRG Intuitive Surgical, $IBKR Interactive Brokers, $BK Bank of New York Mellon, $TRV Travelers, $CSX CSX, $SLB SLB, and $STT State Street.

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