Stocks bounce back after Friday's $2T sell-off, bank earnings preview

Market Overview - President Trump's recent comments on trade relations with China have led to a rebound in the stock market, with futures indicating a strong opening after a significant sell-off that wiped out over $2 trillion in market value on Friday [2][5][17] - The Nasdaq and S&P 500 are leading the market recovery, but Morgan Stanley warns of a potential 11% decline if trade tensions escalate [3][19] Trade Relations - Trump's softened stance on China, stating "don't worry about China, it'll all be fine," contrasts with his previous threats of imposing a 100% tariff on Chinese goods [5][8] - Recent actions from China, including export controls on rare earths and new port fees on US ships, have heightened trade tensions [9][11] Banking Sector - Major banks, including JP Morgan, are expected to report strong earnings due to increased deal-making and trading activity [4][26] - JP Morgan announced a $10 billion initiative to invest in critical industries over the next decade, focusing on sectors like energy and technology [22][24] Rare Earth Minerals - Companies involved in rare earth minerals, such as MP Materials, are experiencing stock price increases due to tightened export controls from China [35] - MP Materials, the largest rare earth producer in the Western Hemisphere, has seen its shares rise over 400% this year [35] AI and Technology - Broadcom's shares surged following a multi-year agreement with OpenAI to collaborate on custom chips and networking equipment, aiming to enhance AI data center capacity [30][31] - OpenAI's partnerships with various tech companies, including Nvidia and AMD, highlight the growing demand for advanced computing infrastructure [32] Earnings Expectations - Upcoming earnings reports from major banks are anticipated to reflect strong performance, with a focus on consumer and commercial credit scrutiny due to recent economic conditions [27][28] - Analysts are closely monitoring the impact of recent automotive bankruptcies on the credit environment for banks [28]