IBM stock hits record high, rare earth stocks fall as US-China trade tensions ease

Market Overview - Global stock markets are experiencing significant gains, with the S&P 500 up 16% year-to-date and reaching new records, while Asian markets like the Korean Cosby and Tokyo's NIK have seen increases of 2.5% and 27% respectively [4][5][6] - The positive sentiment in the market is attributed to optimistic trade discussions between the US and China, with expectations of progress towards a trade agreement [5][6] Earnings Season - The upcoming week is crucial as five of the "Magnificent 7" companies are set to report their earnings, with large-cap tech stocks leading the market gains [7][29] - Notable stock movements include Meta and Nvidia, which are both seeing increases ahead of their earnings reports [7][8] Technology Sector Insights - Goldman Sachs' chief global equity strategist, Peter Oppenheimer, asserts that current tech stock valuations, while high, do not indicate a bubble, as they are supported by strong fundamentals and earnings growth [10][12][17] - The technology sector has outperformed other markets since the financial crisis, with a focus on AI driving significant capital and interest [16][22] Qualcomm's AI Chip Announcement - Qualcomm announced two new AI chips, the AI 200 and AI 250, set to launch in 2026 and 2027, causing a 12% spike in its shares [30][31] - These chips are designed for AI inferencing and are positioned to compete directly with Nvidia and AMD, while also allowing integration with their offerings [34][36] Federal Reserve and Economic Outlook - The Federal Reserve is expected to cut interest rates this week, with market focus on the implications for future monetary policy and economic indicators [49][50] - Analysts are monitoring the labor market and inflation data closely, as these will influence the Fed's decisions moving forward [54][62] Analyst Upgrades - Five Below received an upgrade from JP Morgan, with expectations of strong sales and earnings growth, leading to a price target increase to $186 [66] - Honeywell's rating was raised by RBC, citing potential value unlock from its upcoming split of aerospace and automation units [68] - Booking Holdings saw a bullish outlook from Trish Securities, highlighting growth opportunities in Asia's travel rebound [69] T-Mobile Leadership Transition - T-Mobile's incoming CEO, Serini Gopaland, aims to maintain growth momentum and enhance differentiation in the wireless market [95][96] - The focus will be on network differentiation, digital transformation, and expanding broadband services [100][103] IBM's Quantum Computing Developments - IBM reported significant advancements in quantum computing, utilizing AMD chips to reduce errors, with a goal of achieving a fully fault-tolerant machine by 2029 [74][76][78] - The company is working on integrating quantum computing with existing technologies to enhance computational capabilities [90][92]