Middle East Markets Buoyed by Hopeful Sentiment

While it may not be the holiday season, President Donald Trump has declared an end to the conflict in the Middle East.

Speaking at the Knesset on Monday, President Trump announced the conclusion of what he termed the “long and painful nightmare” for Israelis and Palestinians. Responding to reporters’ inquiries, Trump definitively stated “yes” when asked if the Middle East war had concluded, according to Reuters.

A wave of optimism, driven by different factors, swept through the financial markets. Following President Trump’s imposition of punitive 100% tariffs on Chinese goods, which initially triggered a market downturn on Friday, the President appeared to soften his stance. In a post on Truth Social, Trump suggested that “it will all be fine” with China, hinting at a potential de-escalation of trade tensions.

This shift reinvigorated market sentiment, leading to a rebound across major U.S. stock indexes, with technology stocks spearheading the gains. Notably, quantum computing stocks experienced a surge following JPMorgan Chase‘s announcement of a substantial $10 billion investment in sectors deemed critical to national interests. The move signals a renewed focus on bolstering strategic industries and securing U.S. technological leadership amidst global competition.

Adding to the bullish momentum, Broadcom witnessed a nearly 10% surge in its stock price after unveiling a partnership with OpenAI to develop and deploy custom chips. This collaboration raises intriguing questions about the competitive landscape, specifically regarding Nvidia‘s position. Nvidia currently provides the chips that underpin OpenAI’s ChatGPT. The move by OpenAI suggests a potential diversification strategy, aiming to reduce reliance on a single chip provider and explore customized solutions optimized for its specific AI workloads. Analysts will be closely watching Nvidia’s response and potential counter-moves in this evolving dynamic.

OpenAI’s strategic partnerships and technological advancements are rapidly reshaping the artificial intelligence landscape, establishing it as a key player in the sector.

— CNBC

Mideast conflict ends, Trump declares. In a speech to the Knesset, the President announced the “long and painful nightmare” has concluded and urged leaders to resolve “old feuds.”

Broadcom and OpenAI Team Up. The two tech giants plan to co-develop custom designed chips, estimated at 10 gigawatts, by late next year. The news sent Broadcom‘s shares soaring.

JPMorgan to invest $10B in strategic sectors. The bank’s four areas of focus–aligned with U.S. security–include defense, aerospace, AI, supply chains and advanced manufacturing.

Stocks bounce back. US markets partially rebounded on Monday, after a brutal Friday. The S&P 500 recovered over half of its prior decline. European shares also rose, with the Stoxx 600 index up due to gains in the mining stocks.

[PRO] European sectors insulated from trade war. Analysts argue Europe is safe from Trump’s new tariffs, though a weakening U.S. dollar could hurt European exports. UBS highlights sectors that should be shielded from currency volatility, while omitting a key one.

The U.S. offers Argentina a massive bailout. Here is what it means

Treasury Secretary Scott Bessent announced on X that the U.S. is providing a $20 billion currency swap line. This action essentially swaps stable dollars for volatile pesos.

The move addresses Argentinian liquidity concerns during key midterm elections. It marks the first U.S. intervention of this kind since rescuing Mexico in 1995 and involves both the economic and political welfare of Argentina.

— CNBC