U.S.-China moves to resume trade talks… New York stock market rebounds

Substantial recovery of the decline on the 10th

With both the United States and China showing willingness to resume trade talks, the U.S. stock market rebounded on the 13th (local time).

At 10 a.m. Eastern Time that day, the S&P 500 was up 1.4%, the Nasdaq Composite rose 1.9%. The Dow Jones Industrial Average also climbed 0.9%.

U.S. Treasury futures fell slightly in European trading. The bond market was closed that day for the Columbus Day holiday.

Spot gold prices rose 1.8% to 4,088 dollars per ounce.

On that day OpenAI signed a multi-year deal with Broadcom to collaborate on custom chips and networking equipment. The announcement sent Broadcom shares up 8%, fueling an AI rally.

Nvidia, AMD, and Oracle rose more than 3%. Tesla was trading at 423 dollars, up 2.5%, and Palantir rose 1.1% to 177 dollars.

JPMorgan Chase pledged to invest a total of 1.5 trillion dollars over the next 10 years in U.S. defense, aerospace, AI and other cutting-edge technologies, and energy technologies such as batteries. JPMorgan shares also rose 2.2%.

In retaliation for China's resumption of rare earth import restrictions, President Trump on the 10th announced a 100% increase in tariffs on China. However, on the 12th he significantly toned down that rhetoric. In a post on his Truth Social, he hinted that the threat of large-scale tariff increases against China might not be realized. China's Ministry of Commerce also urged trade talks.

Last Friday, amid concerns about the resumption of a U.S.-China trade war, the U.S. stock market lost 2 trillion dollars in market capitalization in a single day (2,855 trillion won).

Tobin Marcus, head of U.S. policy at Wolfe Research, said, "Fundamental tensions and uncertainties remain, but while talks are underway, concerns about the imposition of 100% tariffs or drastic export controls will be allayed."

Richard Saperstein of Treasury Partners said, "We have escaped the tariff storm of April, but last Friday's market crash reminded us that the market is still within the scope of trade tensions and that short-term volatility can occur."

However, with the government's major payroll deadline of October 15 approaching, the U.S. government entering a third week of shutdown appears to be another source of tension.

Earnings season begins this week. Citigroup, Goldman Sachs, Wells Fargo, JPMorgan, Bank of America, and Morgan Stanley will report results on Tuesday and Wednesday.

Kim Jeong-ah, guest reporter kja@hankyung.com