Stocks Rebound as President Trump Softens China Rhetoric

Economic Impact of US Government Shutdown - The ongoing US government shutdown is delaying key economic reports, including unemployment claims and nonfarm payrolls [1] - Bloomberg Economics estimates that 640,000 federal workers will be furloughed, potentially increasing jobless claims and raising the unemployment rate to 4.7% [1] Stock Market Performance - Most stock indexes reached record highs due to optimism in the AI sector and expectations of corporate profit growth [2] - The S&P 500 Index rose by +1.22%, the Dow Jones by +0.91%, and the Nasdaq 100 by +1.67% [3] - Rising corporate earnings expectations are noted, with over 22% of S&P 500 companies guiding for Q3 earnings above analysts' expectations, although Q3 profits are projected to rise by only +7.2% [3] Trade Relations and Global Economic Indicators - Positive trade news from China, with September exports rising +8.3% year-on-year, exceeded expectations and is seen as a bullish factor for the stock market [2] - The Trump administration's openness to a trade deal with China aims to ease trade tensions, although threats of tariffs on Chinese goods remain [2] Sector-Specific Movements - Chipmakers are experiencing significant gains, with Broadcom up more than +6% and Micron Technology up more than +5% [7] - The "Magnificent Seven" technology stocks are also recovering, with Nvidia and Tesla both up more than +2% [8] - Rare earth stocks are climbing due to tensions between the US and China, with Critical Metals up more than +20% [9] Mining and Precious Metals - Mining stocks are rising, driven by a +2% increase in gold prices, which reached an all-time high [10] - Companies like Coeur Mining and Newmont are seeing gains of more than +3% [10] Earnings Reports and Stock Movements - Warner Bros Discovery is up more than +5% after rejecting a takeover offer, while Ciena Corp is up more than +4% following an upgrade [11] - Fastenal is down more than -4% after reporting Q3 EPS below consensus expectations [12]