ADDX GO Market Morning Wrap - 14th Oct

Stock Market

On Monday Eastern Time, driven by Trump’s softened trade stance and sustained AI capital expenditure enthusiasm, U.S. stocks staged a broad rebound, with major Wall Street indices closing sharply higher.  

 

At the close, the Dow rose 587.98 points (+1.29%) to 46,067.58; the Nasdaq gained 490.178 points (+2.21%) to 22,694.608; and the S&P 500 climbed 102.21 points (+1.56%) to 6,654.72.  

 

Major tech stocks rallied: Tesla rose 5.42%, Alphabet (Google A) gained 3.2%, Nvidia up 2.82%, Amazon up 1.71%, Meta up 1.47%, Apple up 0.97%, and Microsoft up 0.6%.  

 

U.S. rare earth miners led gains: MP Materials surged 21.3%, USA Rare Earth rose 18.6%, Critical Metals soared 55%, and Energy Fuels climbed 16.8%.  

 

Earlier, President Trump’s conciliatory remarks on trade tensions eased investor concerns.  

 

Wolfe Research U.S. policy head Tobin Marcus noted that trade policy uncertainty persists, but Trump’s comments temporarily alleviated fears of tariffs or export controls.

 

“Trump seems to be signaling investors to buy the dip. Given investors profited from buying in seemingly high-risk moments this year, we expect the market to take this cue.”  

 

After OpenAI announced a partnership with Broadcom to co-develop its first self-designed AI processor, AI-related tech stocks were the biggest winners in Monday’s rebound.  

 

CFRA Research chief investment strategist Sam Stovall said, “AI remains the market’s main momentum driver, so dip-buying isn’t surprising.” He cautioned that unresolved trade disputes between major powers warrant vigilance.  

 

Sevens Report’s Tom Essaye commented that as long as AI capex enthusiasm persists, stocks can stay strong, but warned: “If markets start doubting AI’s economic and market stimulus, the drop will be swift and painful.”  

 

JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo will report Q3 earnings on Tuesday, marking the official start of the earnings season. Investors will closely watch tariff impacts on Wall Street giants’ profits.  

 

With the U.S. government still shut down and major economic data delayed, earnings will be a key gauge of economic health.  

 

Per LSEG data, analysts expect S&P 500 Q3 earnings to grow 8.8% year-over-year.

Global Hotspots

German President to Visit UK After 27 Years  

 

Buckingham Palace announced on October 13 that German President Frank-Walter Steinmeier will make a state visit to the UK from December 3-5, the first in 27 years. With Buckingham Palace under renovation, King Charles III and Queen Camilla will host the German delegation at Windsor Castle.

 

The visit aims to strengthen bilateral ties and deepen trade cooperation, including political talks, business meetings, a royal welcome, state banquet, and ceremonial parade. It follows the Kensington Treaty signed this summer, which outlines direct London-Berlin rail links, school exchanges, military cooperation, business investments, and efforts to combat illegal migration.

 

Venezuela Closes Embassies in Norway and Australia  

 

On October 13, Venezuela announced the closure of its embassies in Norway and Australia, opening new missions in Zimbabwe and Burkina Faso to “strengthen alliances with Global South nations” as part of a “strategic resource reconfiguration.”

 

Diplomatic affairs and consular services for Venezuelans in Norway and Australia will be handled by “multi-country missions,” with details to follow. The new embassies aim to boost cooperation in agriculture, energy, education, mining, and other shared interests.

 

Fed’s Paulson Backs Two More 25bps Rate Cuts in 2025  

 

Fed’s Anna Paulson supported two additional 25-basis-point rate cuts this year, stating monetary policy should ignore tariff-driven price hikes, as she sees no conditions for tariffs to cause sustained inflation.

 

Paulson expects Q3 growth to remain above trend but noted narrow growth drivers, with some business contacts uncertain about future demand sources.

 

Gaza Ceasefire Agreement Signed in Egypt  

 

On October 13, the U.S., Egypt, Qatar, and Turkey signed a Gaza ceasefire agreement in Sharm El-Sheikh, Egypt. The Sharm El-Sheikh “Peace Summit,” hosted by Egyptian President Sisi and U.S. President Trump, opened that evening.

Company News

Oracle CEO: OpenAI’s $60 Billion Annual Cloud Bill “No Problem”  

 

Oracle’s new co-CEO Clay Magouyrk expressed confidence in OpenAI’s ability to pay its massive cloud infrastructure bill at Oracle’s AI World conference in Las Vegas on Monday.

 

OpenAI signed a five-year, $300 billion-plus cloud deal with Oracle in September, equating to $60 billion annually—an unprecedented scale in cloud computing. Magouyrk said, “Look at their growth—nearly 1 billion users. It’s unheard of.”

 

Roche/Lilly Alzheimer’s Blood Test Approved  

 

Roche announced Monday that its Elecsys Alzheimer’s blood test, developed with Eli Lilly, received FDA approval. The test, for patients 55+ with cognitive decline signs, measures plasma pTau181 protein levels to aid in diagnosing Alzheimer’s.

 

Roche Diagnostics North America CEO Brad Moore said the test brings Alzheimer’s biomarkers to primary care, enabling faster answers and early-stage support.

 

Salesforce to Invest $15 Billion in San Francisco for AI Innovation  

 

Cloud software provider Salesforce announced Monday a $15 billion investment over five years in San Francisco to support AI innovation and local workforce development.

 

The funds will establish a new AI incubator center at its San Francisco campus and help businesses adopt AI agent technologies that perform tasks for users.

 

OpenAI and Broadcom Announce Strategic Partnership  

 

OpenAI and Broadcom plan to launch a custom data center chip in 2026, deploying 10 gigawatts of OpenAI-designed AI accelerators. OpenAI will lead chip and system design, with Broadcom handling co-development and deployment, starting in H2 2026 and completing by 2029.

 

OpenAI President Brockman said, “Self-developed chips let us embed our experience in building cutting-edge models directly into hardware, unlocking higher intelligence and capabilities.” Broadcom’s stock surged nearly 10% at close.

 

Goldman Sachs to Acquire VC Platform Industry Ventures  

 

Goldman Sachs agreed to acquire Industry Ventures for $665 million in cash and stock, payable at closing, with up to $300 million in additional contingent payments (cash and stock) based on performance through 2030. The deal is expected to close in Q1 2026.

 

Goldman’s Global Banking & Markets advised on the deal, with Oppenheimer advising Industry Ventures, which manages $7 billion in assets.

Forex & Commodities  

COMEX gold futures rose 3.24% to $4,130/oz; COMEX silver futures surged 7.47% to $50.775/oz.  

 

Gold and silver hit record highs. Pepperstone analyst Felipe Barragán noted strong fundamentals for both metals, saying, “While short-term profit-taking is possible, the medium-term outlook remains robust, supported by ongoing macroeconomic fragility and shifting political landscapes.”  

 

WTI crude futures rose 1% to $59.49/barrel; Brent crude futures gained 0.94% to $63.32/barrel.  

 

At the New York close, the dollar index rose 0.43% to 99.26, with most non-U.S. currencies falling.

Key Events

Precious Metals Surge! Silver Hits 45-Year High, Gold Breaks $4,130  

 

Fueled by renewed trade tensions and U.S. rate cut expectations, gold broke $4,130/oz for the first time on Monday, up over 3%, while tight silver inventories pushed prices to a 1980s peak.

 

Amid multiple tailwinds, banks like BofA and Goldman Sachs recently raised precious metals targets, though overbought technicals signal short-term volatility risks.

Cryptocurrency  

Bitcoin fell 0.16% in 24 hours to $115,360.  

 

Ethereum (ETH-USD) rose 2.23% to $4,258.09.  

 

XRP (XRP-USD) gained 3.12%, BNB (BNB-USD) fell 0.70%, Solana (SOL-USD) rose 6.02%.  

 

Dogecoin (DOGE-USD) gained 3.55%, Cardano (ADA-USD) rose 3.87%.

Key Events

MicroStrategy Boosts Bitcoin Holdings at Record-High Price  

 

Bitcoin treasury firm MicroStrategy (MSTR.US) announced Monday it added to its Bitcoin holdings, its first purchase since Bitcoin hit a record high earlier this month. The $27 million transaction pushed its Bitcoin portfolio value above $73 billion, reinforcing its status as the largest corporate Bitcoin holder.  

 

Per the announcement, MicroStrategy bought 220 Bitcoins at an average of $123,561 each, its highest single-transaction cost ever.

Market Events and Most Anticipated Earnings Releases