While the bond market was closed for Monday's Columbus Day/Indigenous Peoples' Day holiday, the stock market was not. And those who participated in today's session were in an upbeat mood after President Donald Trump toned down his rhetoric toward China.
At the close, the blue-chip Dow Jones Industrial Average was up 1.3% at 46,067, the broader S&P 500 had gained 1.6% to 6,654, and the tech-heavy Nasdaq Composite was 2.2% higher at 22,694.
This marked a sharp turnaround from Friday's price action, which was decidedly lower across the board after President Trump accused China of "becoming very hostile." He also threatened to hike tariffs and cancel an upcoming meeting with Chinese President Xi Jinping.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But in a Sunday post on Truth Social, Trump wrote, "Don't worry about China, it will all be fine!" And this seemed to be enough to calm Wall Street's nerves.
"Investors may have thought the tariff story had run its course as a market catalyst, but last week showed it can still pack a punch," says Chris Larkin, managing director of Trading and Investing at E*TRADE from Morgan Stanley. "Although the White House appeared to moderate its stance over the weekend, additional flare-ups still have the potential to trigger sharp responses from the markets."
Larkin notes that the focus of this week will be on the new earnings season, especially with the release of the next Consumer Price Index (CPI) report delayed by one week due to the government shutdown.
Big banks start reporting Q3 earnings tomorrow
Indeed, several of the country's biggest banks are featured on this week's earnings calendar, unofficially marking the start of the third-quarter reporting season.
Among them is JPMorgan Chase (JPM), which will release its Q3 results ahead of Tuesday's open.
Analysts expect JPM, which is the country's largest bank by assets, to report earnings of $4.87 per share, up 11.4% year over year (YoY), on revenue of $45.6 billion (+6.8% YoY).
"Global U.S. banks are expected to report higher net revenue and earnings per share on a year-over-year basis in what is seasonally a weaker quarter," says CFRA Research analyst Kenneth Leon.
However, he adds that net interest income (NII) – a key profitability measure for banks that shows the difference between revenue made on interest-bearing accounts like loans and the costs paid for those assets – will likely "show only moderate growth as lower rates from the Federal Reserve narrow loan interest spreads."
Broadcom becomes the latest chipmaker to partner with OpenAI
As for today's single-stock news, Broadcom (AVGO) soared 9.9% – making it one of the best-performing S&P 500 stocks Monday – after it became the latest chipmaker to partner with OpenAI.
The two companies announced that they are collaborating to build and deploy 10 gigawatts of OpenAI-designed artificial intelligence (AI) chips and computing systems by the end of 2029.
"By designing its own chips and systems, OpenAI can embed what it's learned from developing frontier models and products directly into the hardware, unlocking new levels of capability and intelligence," the press release stated.
Broadcom joins the likes of Nvidia (NVDA), Oracle (ORCL) and Advanced Micro Devices (AMD), which have all announced commitments with OpenAI in recent weeks.
Bloom Energy jumps in Brookfield deal
Elsewhere in the AI space, Bloom Energy (BE) jumped 26.5% after the company unveiled a strategic partnership with Brookfield Asset Management (BAM, +3.5%).
According to the agreement, Brookfield will invest up to $5 billion to use Bloom Energy's fuel cell technology to build and design "AI factories."
"Over the next decade, foundational models and generative AI are expected to drive ongoing demand for power," Brookfield stated in the press release, adding that "this partnership adds a powerful new tool to our global growth strategy, especially in a grid-constrained market environment."
Related content
- The Best Small-Cap Stocks to Buy Now
- How to Invest for Fall Rate Cuts by the Fed
- Should You Buy Gold as It Tops $4,000? Here's What the Experts Say
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us?A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Planner: If You're Not Doing Roth Conversions, You Need to Read This
Roth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us? A Retirement Psychologist Makes the Case
A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Adviser: This Is How You Can Adapt to Social Security UncertaintyRather than letting the unknowns make you anxious, focus on building a flexible income strategy that can adapt to possible future Social Security changes.
-
I'm a Financial Planner for Millionaires: Here's How to Give Your Kids Cash Gifts Without Triggering IRS PaperworkMost people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse.
-
'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour AftertasteProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
-
Quick Question: Are You Planning for a 20-Year Retirement or a 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
