Stocks Surge as US-China Trade Hopes Revive, AI Rally Gains Steam – US Market Wrap

Wall Street traders reignited a global equity rally as signs of renewed cooperation between the US and China on trade talks and easing Middle East tensions boosted risk appetite, while the artificial intelligence boom continued to propel technology shares higher.

After its steepest selloff in six months, the S&P 500 surged 1.6%, marking its best session since May and extending a bull market that has already added $28 trillion in market value. A major semiconductor index jumped nearly 5%, led by a 10% rally in Broadcom Inc. after OpenAI signed a multiyear agreement to purchase its custom chips and networking equipment.

With trade worries easing and investors dismissing talk of an AI-driven bubble, the sharp rebound underscored how entrenched the buy-the-dip mentality remains heading into earnings season, which unofficially begins Tuesday with a wave of reports from major US banks.

Optimism grew after President Donald Trump’s administration signaled a willingness to pursue a trade agreement with China, while Beijing’s Commerce Ministry called for further dialogue to resolve lingering disputes.

Sentiment also improved following Trump’s visit to the Middle East, where he celebrated a cease-fire agreement in Gaza and the release of prisoners held by Hamas. The president said that humanitarian aid and food supplies have begun flowing into the war-torn region.

Elsewhere, Treasury futures were little changed as the US bond market remained closed for Columbus Day, while the dollar strengthened 0.2%.