Trade Negotiations

Stocks rallied for a second week, hitting record highs, driven by encouraging inflation data (September CPI) and strong corporate earnings. The S&P 500 and Nasdaq Composite rose 2% and 2.3% respectively. Lower-than-expected CPI data suggests potential Federal Reserve interest rate cuts. Approximately 87% of S&P 500 companies reporting have exceeded earnings expectations. Companies like Danaher, Capital One, and GE Vernova contributed to the positive trend. Next week’s earnings releases from major companies will be closely watched.

US stocks experienced a volatile day, closing mixed. Initial optimism about potential US-China trade de-escalation faded after Trump threatened action on cooking oil. Powell hinted at a possible end to Fed tightening. Major bank earnings exceeded expectations. Oracle will use AMD’s AI chips, diversifying from Nvidia. Trump is credited for brokering a ceasefire between Israel and Hamas.

China has reportedly expanded restrictions on Nvidia chips, impacting the RTX Pro 6000D AI chip in addition to the H20 GPU. This move signals growing confidence in China’s domestic semiconductor industry and a potential negotiation tactic with the U.S. Huawei is emerging as a domestic force with its Ascend chips. Experts view these actions as a strategic attempt to gain leverage in trade negotiations, influencing U.S. policy on export controls. The U.S. may re-evaluate its approach balancing security concerns with economic interests.