US Stocks Rebound on Monday After Friday’s Losses

US stocks staged a recovery on Monday, as concerns about trade tensions between the US and China eased. Leading the gains were chipmakers, after OpenAI announced yet another big deal. Keep reading to find out more. 

Trump Threatens Tariffs on China

On Friday, US President Donald Trump threatened China with additional tariffs of 100% starting from 1 November. 

In a post on social media, he wrote that China had “taken an extraordinarily aggressive position on Trade” referring to Beijing’s intention to place export controls on rare earths and critical minerals. 

US stock markets sank in response to Trump’s comments, recording their worst day since April. The Dow Jones, S&P 500 and Nasdaq closed the session with losses of 1.9%, 2.7% and 3.6%, respectively. 

However, on Sunday Trump appeared to row back on his earlier threats. “Don’t worry about China, it will all be fine!” he wrote on social media, further stating “the U.S.A. wants to help China, not hurt it!!!”

Subsequently, US stocks rebounded on Monday, recovering a significant portion of Friday’s losses. The Dow Jones, S&P 500 and Nasdaq gained 1.3%, 1.6% and 2.2% respectively. 

OpenAI and Broadcom Announce Partnership

Leading Monday’s stock market gains were chipmakers, after it was announced that OpenAI had struck another deal. 

On Monday, OpenAI and Broadcom announced a partnership under which they will jointly build and deploy 10 gigawatts of custom AI accelerators, with OpenAI co-designing custom chips made specifically for its AI models. Financial terms of the deal were not disclosed in the announcement. 

Broadcom shares surged on the news, gaining almost 10% during the session, making it the day’s second-best performer on the S&P 500 and Nasdaq.

The announcement follows other big deals struck by OpenAI in the last month with Nvidia, Oracle and AMD.

Gold and Silver Keep Rising

Meanwhile, gold prices climbed to another record high on Tuesday morning, after the precious metal rose past $4,100 an ounce for the first time on Monday. 

Thus far in 2025, gold prices have risen by a remarkable 58%, compared with the S&P 500’s gain of 13% over the same timeframe. 

Gold prices have been boosted by safe haven demand fuelled ongoing economic and geopolitical uncertainty, as well as strong demand from central banks and increased expectations of interest rate cuts.  

In terms of rate cut expectations, according to the CME FedWatch tool, markets are currently pricing in a 98% chance that the Federal Reserve will cut rates by 0.25% when it meets in two weeks' time. 

Although gold is stealing all the headlines, it’s not the only precious metal rallying in 2025. 

Silver also hit a record high on Monday, after it broke above the $50 threshold on Friday, surpassing its previous record which was set in 1980. 

Year-to-date, silver prices have soared by an extraordinary 75%, as the precious metal also experiences an increase in safe haven demand as well as strong industrial demand. 

What to Look Out for This Week

The US government shutdown looks set to enter its third week on Wednesday.  

However, despite the shutdown, the Bureau of Labor Statistics (BLS) will reportedly bring back staff to work on September’s Consumer Price Index (CPI) data. 

The CPI announcement had previously been scheduled for 15 October, but it is now slated for release next week on 24 October. 

Elsewhere, earnings season is back upon us.

Whilst a handful of companies have already reported quarterly earnings, this week is when things really get started, as major US banks kick things off on Tuesday. Below, we’ve highlighted some of the upcoming announcements this week: