S&P 500 – 6,644.31 (-0.16%)

Dow Jones – 46,270.46 (+0.44%)

NASDAQ – 22,521.70 (-0.76%)

• Market Activity: Big banks kicked off Q3 earnings season this week. U.S. stocks slipped in Tuesday trading as renewed trade frictions between the U.S. and China weighed on investor sentiment.
• China Sanctions U.S. Units of Hanwha Ocean: China announced sanctions against U.S. units of shipbuilder Hanwha Ocean, barring them from conducting business with the country. The move follows Washington’s recent decision to increase fees on Chinese vessels docking at U.S. ports.
• Inflation Update: Federal Reserve Chair Jerome Powell said Tuesday that the outlook for employment and inflation has not changed much since the central bank's policy meeting in September. He emphasized, however, that "the downside risks to employment appear to have risen." Another rate cut is possible at the Fed's next meeting on Oct. 28-29, even though Powell did say Tuesday that monetary policy will be set meeting by meeting.
• China Tightens Rare Earth Export Controls: Last week, China imposed new export controls on rare-earth minerals, critical for applications in semiconductors, defense, and battery technology.
• Chinese Exports to U.S. Plunge to 12-Year Low: According to Beijing, exports from China to the U.S. fell 27% year-over-year in September, hitting a 12-year low, while overall Chinese exports rose 8.3%, a seven-month high.
• Trump and Xi Still Expected to Meet at APEC: Treasury Secretary Scott Bessent confirmed that President Trump still plans to meet President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit later this month.
• U.S. Government Shutdown Enters Second Week: The ongoing U.S. government shutdown continues with the House of Representatives still in recess and no progress toward reopening.
• Dollar Strengthens as Oil Prices Retreat: The U.S. dollar is gaining against major currencies, while WTI crude oil trades lower after the International Energy Agency (IEA) raised its supply forecast and trimmed its demand outlook.
• Corporate Earnings Show Broad-Based Strength: S&P 500 earnings are projected to rise about 8% year-over-year, with gains expected across seven of the 11 sectors.
• Gold Hits Record High Above $4,100: Gold (/GC) surged to a new all-time high above $4,100 per ounce this morning, extending its remarkable 55.3% year-over-year gain amid rising risk aversion.
• Volatility Index Climbs as Market Anxiety Builds: The VIX climbed above 22 for the first time since late June, surpassing Friday’s highs and signaling rising investor anxiety.
• Bitcoin Pulls Back from Record Levels: Bitcoin (/BTC) has fallen from record highs above $126,000.
• Apple Eyes AI Expansion with Prompt AI Acquisition: Apple (AAPL) climbed on reports it may acquire talent and technology from startup Prompt AI, marking the company’s first major acquisition in over a decade.
• Bloom Energy Partners with Brookfield for AI Power Solutions: Bloom Energy (BE) surged after announcing a deal with Brookfield Asset Management to deploy fuel cells for AI centers.
• Estee Lauder Upgraded by Goldman Sachs: Estee Lauder (EL) rose following a Goldman Sachs upgrade to Buy, citing potential sales growth resuming as early as the September quarter.
• Disney Gains on Taylor Swift Eras Tour Docuseries: Walt Disney (DIS) added gains on news of a Taylor Swift Eras Tour docuseries streaming on Disney+.
• Broadcom and OpenAI Announce AI Infrastructure Collaboration: A new collaboration was announced between chipmaker Broadcom and AI leader OpenAI to build advanced AI infrastructure.
• JPMorgan Beats Estimates but Shares Slip: JPMorgan Chase (JPM) shares slipped slightly even after posting results that comfortably exceeded Wall Street expectations, driven by robust performance in both trading and investment banking. Fixed income trading surged 21% from the prior quarter, while equity trading rose 33%.
• Wells Fargo Raises Profit Target as Asset Cap Lifted: Wells Fargo (WFC) led the major banks higher after raising its profitability target. The bank now projects a 17–18% return on tangible common equity over the medium term, following regulators’ decision to remove the post-scandal asset cap.
• Goldman Sachs Delivers Strong Quarter, Investors Take Profits: Goldman Sachs (GS) edged lower despite reporting a 37% year-over-year profit increase, fueled by solid investment banking revenue.
• BlackRock Reports Massive $205 Billion in Net Inflows: BlackRock (BLK) slipped even as it reported a strong quarter highlighted by $205 billion in net inflows, far exceeding analyst expectations and underscoring strong investor demand.
• Oracle Outperforms on AI Optimism: Oracle (ORCL) outperformed after upbeat analyst commentary and an optimistic CNBC interview with its co-CEOs highlighting the company’s growing role in artificial intelligence.
• Broadcom Soars on OpenAI Partnership: Broadcom (AVGO) surged, at times trading up double digits, after announcing its collaboration with OpenAI, fueling renewed enthusiasm for AI-related stocks.
• Nvidia Dips on Rising U.S.–China Tensions: Nvidia (NVDA) slipped alongside other tech names as investors weighed geopolitical risks and potential competitive headwinds in the AI chip space.
• AMD Gains on Oracle Cloud GPU Deployment News: AMD (AMD) gained after CNBC reported that Oracle Cloud will deploy 50,000 AMD GPUs starting late next year, reinforcing AMD’s growing presence in AI infrastructure.
• Salesforce to Invest $15 Billion in Global AI Expansion: Salesforce (CRM) rose after Reuters reported plans to invest $15 billion in San Francisco to build an AI hub and expand its global AI platform.
• Rare Earth and Retail Stocks Rally on Trade War Fears: Domestic rare earth producers extended their explosive gains including MP Materials (MP), USA Rare Earth (USAR), and Critical Metals (CRML).
• Johnson & Johnson Slips Despite Solid Results: Johnson & Johnson (JNJ) edged lower despite reporting strong earnings.

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“The U.S.-China relationship is the most important bilateral relationship in the world today.” — Former President Barack Obama

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Notable Stocks

• Apple (AAPL)
• Wells Fargo (WFC)
• Nvidia (NVDA)
• Oracle (ORCL)
• JPMorgan (JPM)

Weekly Notables

Walmart Partners with OpenAI to Bring ChatGPT-Powered Shopping to Customers

Walmart (WMT) announced Tuesday a groundbreaking partnership with OpenAI (OPAI.PVT) that will allow customers and Sam’s Club members to shop directly through ChatGPT, marking a major step in integrating artificial intelligence into mainstream retail experiences. The collaboration will leverage ChatGPT’s new Instant Checkout feature, enabling users to discover, select, and purchase products seamlessly within the AI platform — all without leaving the chat interface.

LendingTree CEO and Founder Doug Lebda Dies in ATV Accident at 55

Doug Lebda, founder and CEO of online lending platform LendingTree, tragically died over the weekend in an all-terrain vehicle accident at his family farm in North Carolina. He was 55. In a company statement on Monday, LendingTree said it is “grieving the unexpected death” of Lebda, calling him a “visionary leader whose relentless drive, innovation, and passion.

Earnings Spotlight: Taiwan Semiconductor Manufacturing TSM (TSMC)

Taiwan Semiconductor Manufacturing TSM, or TSMC, the world’s leading contract chip maker, is set to release its full third-quarter earnings results on October 16. TSM stock has gained about 43% over the past year, primarily due to strong demand for advanced chips, rising orders from key clients like Apple AAPL and Nvidia NVDA, and improving chip supply conditions. Wall Street analysts expect the company to report earnings of $2.63 per share, representing a 35% increase year-over-year.

What to Watch Ahead:

October 15: Expected earnings from ASML (ASML), Bank of America (BAC), Morgan Stanley (MS), Abbott Labs (ABT), Progressive (PGR), PNC (PNC), United Airlines (UAL), and JB Hunt (JBHT).
October 16: September PPI, September core PPI, September retail sales, and expected earnings from Taiwan Semiconductor (TSM), Marsh & McLennan (MMC), U.S. Bancorp (USB), Infosys (INFY), Travelers (TRV), and CSX (CSX).
October 17: September housing starts and building permits and expected earnings from American Express (AXP), Truist (TFC), SLB (SLB), State Street (STT), Fifth Third Bancorp (FITB), and Regions Financial (RF).