Stock Market Today - Dow Jumps 491 Points as Trump’s China Shift Ignites Global Rally

Wall Street Rallies as Trump Softens Tone on China; Investors Rush Back Into Risk Assets

U.S. markets roared back from Friday’s brutal selloff after President Donald Trump dialed down his aggressive rhetoric toward Beijing. His Truth Social post, declaring that “it will all be fine,” sent a powerful signal to risk assets that tariffs may not escalate further. By midday Monday, the Dow Jones Industrial Average (DJIA) surged 491 points (+1.1%) to 45,895.35, the S&P 500 (GSPC) climbed 1.09% to 6,624.09, and the Nasdaq Composite (IXIC) jumped 1.51% to 22,538.79. The Russell 2000 added 1.95%, leading a broad-based advance that saw nearly 80% of S&P 500 components trade in positive territory.

The rebound came after the market shed nearly $2 trillion in value on Friday when Trump threatened to impose 100% tariffs on Chinese imports starting November 1. His latest message, coupled with Vice President JD Vance’s assurance that negotiations remain possible, calmed fears of an imminent trade war. Treasury Secretary Scott Bessent reinforced the optimism by confirming that the proposed tariff hikes “don’t have to happen,” signaling an opening for renewed dialogue between Washington and Beijing.

Technology Sector Ignites the Rebound: AVGO, NVDA, AMD, and TSM Lead the Charge

Tech stocks spearheaded Monday’s recovery as investors rushed back into AI-driven names. Broadcom (AVGO) soared nearly 10% to $355.73 after officially announcing a massive partnership with OpenAI to build and deploy 10 gigawatts of custom AI accelerators, a deal that cements Broadcom’s position in next-generation infrastructure. Nvidia (NVDA) rose 2.2%, while Advanced Micro Devices (AMD) climbed over 3% amid speculation of additional AI collaborations.

Chip suppliers also joined the rally — Taiwan Semiconductor Manufacturing Company (TSM) surged 7.17% to $300.77 after analysts forecast its Q3 profit would soar 28% to $13.55 billion, driven by AI hardware demand from Nvidia and Apple. On Semiconductor (ON), Micron (MU), and Marvell (MRVL) each gained between 3% and 4%, benefiting from optimism that the AI capital expenditure cycle will remain strong into 2026.

The Information Technology sector of the S&P 500 jumped 2.5%, marking its strongest single-day performance since May. Investors interpreted Trump’s softened tone as a green light to re-enter high-beta names that rely heavily on Chinese supply chains for rare earth materials and semiconductor components.

Precious Metals Surge: GC=F Hits New Record, SI=F Breaks 1980 Peak Amid Inflation Hedge Buying

The rush back into risk assets didn’t stop investors from hedging. Gold (GC=F) spiked 2.97% to an all-time high of $4,119.30 per ounce, while Silver (SI=F) exploded 6.78% to $50.45, surpassing its 1980 nominal record set during the Hunt brothers’ silver squeeze. Adjusted for inflation, silver would need to reach roughly $209 per ounce to match its prior real high.

The Global X Silver Miners ETF (SIL) surged nearly 6%, reaching levels unseen since 2012. Meanwhile, iShares Silver Trust (SLV) advanced 3.83% to $47.17 as global investors flocked to metals amid fears of prolonged trade turbulence and policy uncertainty. Analysts noted that the ongoing U.S. government shutdown, delayed inflation data, and potential Federal Reserve caution are reinforcing safe-haven demand even as equities rebound.

Energy and Commodities Rebound: Oil Regains Footing as Trade Fears Recede

Oil prices also bounced after Friday’s rout. Brent crude (BZ=F) climbed 1.51% to $63.68 per barrel, while West Texas Intermediate (CL=F) traded near $60. The rebound followed Trump’s reassurances that he wanted to “help China, not hurt it,” softening concerns over a potential slowdown in global demand.

The earlier tariff threat had triggered a sharp 3.8% plunge in Brent—its worst day since August—but Monday’s tone reversal eased fears of an extended commodity selloff. The S&P GSCI Spot Index advanced 0.33% to 547.35, reflecting a synchronized rise in metals, oil, and agricultural commodities.

**Financial Giants Set the Stage for Earnings Season: Focus on JPM, GS, C, WFC, BAC, and MS

Earnings season begins this week, with major Wall Street banks preparing to report results amid renewed volatility. JPMorgan Chase (JPM) gained 2.1% to $307.22 after unveiling a $10 billion national security investment initiative, part of a broader $1.5 trillion “Security and Resiliency” financing plan. CEO Jamie Dimon said the strategy targets key industries such as defense, AI, quantum computing, and critical minerals to reduce U.S. reliance on foreign supply chains.

Goldman Sachs (GS) and Citigroup (C) each rose over 2%, while Wells Fargo (WFC) and Bank of America (BAC) advanced ahead of Tuesday’s and Wednesday’s reports. Analysts forecast financial sector earnings growth of 12.9% in Q3, supported by stronger dealmaking, improved trading activity, and higher net interest income. Morgan Stanley (MS) is expected to post moderate gains as its wealth management segment stabilizes margins.

Industrial and Small-Cap Rebound: RUT +1.95% as Broader Participation Returns

Small-cap and cyclical names joined the recovery, with the Russell 2000 (IWM ETF) up 1.9% to 242.31. This marked a sharp reversal from Friday’s 3% drop, the index’s worst session since April. Industrials and materials benefited from improved risk sentiment, as traders bet the U.S.–China dispute may not escalate further.

Sectors exposed to tariffs—like machinery, steel, and logistics—gained between 1.5% and 2.2%, reflecting short-covering and renewed positioning ahead of the upcoming earnings calendar. Market breadth strengthened significantly, with advancing stocks outnumbering decliners by nearly 4 to 1 on the NYSE.

Corporate Moves: BE Soars 25%, STUB Recovers Post-IPO, and WBD Rebuffs Takeover Attempt

Bloom Energy (BE) skyrocketed 25.65% to $109.15 after announcing a $5 billion AI data center partnership with Brookfield Asset Management (BAM). The agreement aims to deploy Bloom’s fuel-cell technology across AI facilities in the U.S. and Europe, offering on-site, grid-independent power solutions.

Meanwhile, StubHub (STUB) gained nearly 5% to $19.82 as analysts initiated coverage following its September IPO with overwhelmingly bullish calls—11 out of 12 Buy ratings, citing strong revenue growth, an expanding direct ticket issuance business, and 81% gross margins.

In the media sector, Warner Bros. Discovery (WBD) jumped 4% after rejecting Paramount Skydance’s proposed $20 per share buyout. Reports suggest a higher counteroffer or hostile bid may emerge, keeping WBD in focus as a takeover candidate

Macro Undercurrents: Shutdown, Delayed CPI, and Fed’s Powell in Spotlight

The ongoing U.S. government shutdown continues to weigh on sentiment, delaying critical data releases such as CPI (rescheduled to Oct. 24), retail sales, and PPI. The data blackout leaves the Federal Reserve with fewer real-time signals ahead of Chair Jerome Powell’s Tuesday speech on the economy and monetary outlook.

Despite uncertainty, equity markets appear resilient. The VIX volatility index fell 7% to 20.13, and the U.S. 10-year yield held around 4.03%, reflecting stable bond sentiment even with Treasury markets closed for Columbus Day.

Metals and Momentum Meet Policy Crossroads: Silver’s Surge Mirrors Inflation Anxiety

While gold continues to dominate headlines, silver’s renewed breakout above $50/oz carries historical weight. The last time silver traded near this level was January 1980—an era marked by inflation, monetary tightening, and speculative excess. In real terms, that would equate to $209/oz today, underscoring how far inflation has eroded purchasing power.

The Global X Silver Miners ETF (SIL) and iShares Silver Trust (SLV) both confirmed strong inflows as investors rotate toward tangible assets amid policy volatility. Analysts view the rally as both a hedge and a reflection of industrial demand tied to solar energy and semiconductor production—two sectors directly in the crossfire of U.S.-China trade politics.

Market Outlook: Technical Recovery With Fragile Foundations

Despite Monday’s euphoria, analysts caution that sentiment remains brittle. The S&P 500’s rebound retraced roughly 40% of Friday’s losses, but unresolved issues—tariff risk, delayed economic data, and fiscal uncertainty—linger beneath the surface.

The convergence of AI-driven optimism, record precious metal prices, and global trade recalibration defines a volatile backdrop heading into earnings season. Traders will closely watch Trump’s next policy moves, Powell’s speech, and upcoming corporate results for confirmation that this rebound represents more than a one-day relief rally.

Based on the breadth of participation, improving sector rotation, and strong risk-on appetite, the near-term market tone is cautiously bullish. However, volatility remains elevated, and investors should expect sharp swings tied to trade headlines and Fed communication. For now, the bias favors a short-term “Buy” stance on indices (S&P 500, Nasdaq, Dow)—with tight risk controls amid ongoing macro uncertainty.

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