US stocks surged on Monday, bouncing back from Friday's rout after President Trump played down the escalating US trade standoff with China, saying it "will all be fine!"

The Dow Jones Industrial Average (^DJI) jumped 1%, or over 400 points. The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) gained nearly 1.1% and 1.5%, respectively, coming off their worst day since April.

Stocks are set to recoup some of Friday's hefty losses after Trump dialed back his threat from Friday to impose an additional 100% tariff on Chinese goods from Nov. 1. That move reignited fears of a full-on US-China trade war and triggered a Wall Street selloff that erased roughly $2 trillion in US stocks' value.

“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment,” Trump wrote on Truth Social on Sunday. “He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it.”

While Trump's comments aimed to calm jitters, they also kept up the pressure on Beijing to unwind its recent tightening in trade curbs by stressing the potential for economic damage. Meanwhile, China's export growth topped forecasts in September, as it strengthened trade with countries other than the US.

Beyond trade headlines, AI demand optimism was boosted by OpenAI's partnership with Broadcom (AVGO), the latest in a string of AI deals. Broadcom shares jumped 6%.

Meanwhile, Wall Street is bracing for uncertainty in coming days as the US government shutdown stretches into its second full week. The consumer inflation report due on Wednesday has had its release pushed back to Oct. 24.

Other scheduled data ranging from retail sales to wholesale inflation is likely to be delayed, leaving the market and the Federal Reserve flying blind on the US economic landscape. That turns the spotlight on Fed Chair Jerome Powell's speech on Tuesday, covering the economic outlook and monetary policy.

At the same time, earnings season kicks off with results from the biggest Wall Street banks. JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), and Citigroup (C) are set to report on Tuesday, followed by Bank of America (BAC), and Morgan Stanley (MS) on Wednesday. Analysts expect profits at the six major banks to climb 6% from the third quarter of last year, according to Bloomberg data.

Tech and chip stocks rebounded ahead of the opening bell on Monday after President Trump struck a more pacifying chord with China, stating, \\"it will all be fine!\\"

Shares of chipmakers were under pressure on Friday after tensions between the two countries heated up again and Trump promised to impose 100% tariffs on Chinese goods.

Advanced Micro Devices (AMD) and Marvel (MRVL) rose 3%. On Semiconductor (ON), Micron (MU), and Taiwan Semiconductor (TSM) gained over 4%. Qualcomm (QCOM) rose 2%.

Nvidia (NVDA) also rallied in premarket trading, along with all of the \\"Magnificent Seven\\" stocks. Shares of the $4 trillion company were up 3% on Monday morning.

Meanwhile, Chinese stocks tumbled. Hong Kong's Hang Seng index (^HSI) closed 1.5% lower, as Chinese tech stocks such as Alibaba (BABA) and Tencent (TCEHY) slid.

Brookfield Asset Management (BAM) announced Monday it's investing up to $5 billion in fuel cell manufacturer Bloom Energy (BE) to develop artificial intelligence data centers, which sent Bloom Energy's stock soaring over 29% in premarket trading.

The two companies said the strategic partnership will focus on building AI factories, including one in Europe, which is expected to be announced by the end of the year. Bloom Energy's other partnerships include ones with American Electric Power (AEP), Equinix (EQIX), and Oracle (ORCL).

Shares of Brookfield Asset Management were 1.7% higher ahead of the opening bell.

Yahoo Finance's David Hollerith reports:

JPMorgan Chase (JPM) said on Monday it plans to invest as much as $10 billion in direct equity and venture capital stakes in companies operating within key industries such as artificial intelligence, mineral producers, and defense.

The strategy is part of a wider \\"security and resiliency\\" plan by the country’s largest bank to commit $1.5 trillion in future financing and spending on industries critical to national and economic security in the US and allied nations, according to a press release.

JPMorgan CEO Jamie Dimon said that the plan is aimed at speeding up investments in these critical industries where the US and its allies have become hampered domestically and overly reliant on foreign supply chains.

\\"It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing — all of which are essential for our national security,” Dimon said in the press release.

Read more here.

Xiaomi (1810.HK, XIACF) reported a fatal crash on Monday which has renewed fears surrounding the automakers electric car doors. Xiaomi's Hong Kong shares fell more than 5% today.

Bloomberg News reports:

A fatal crash involving a Xiaomi Corp. SU7 electric sedan on Monday has renewed concerns over electronically-operated car door handles, after bystanders were unable to open the doors and rescue the driver before it burst into flames.

The accident, which happened in the southwestern Chinese city of Chengdu, was suspected to have been caused by drunk driving and killed the motorist, police said in a statement.

Although authorities didn’t specify the vehicle model, Chinese media reports and videos on platforms like Weibo suggest it was a Xiaomi SU7. Footage showed the car engulfed in flames after the crash, with bystanders attempting unsuccessfully to rescue the driver.

Xiaomi’s shares dropped as much as 8.7% Monday, the most since April, before paring some of the losses. The company didn’t immediately respond to a request for comment.

Following a preliminary investigation, police said the driver — identified as a 31-year-old man surnamed Deng — was suspected of driving under the influence when he crashed into another car and veered over a planted median before the vehicle caught fire. Deng died at the scene, according to the statement.

Read more here.

TSMC's stock rose 4% before the bell after analysts forecast that the chipmakers profit for the third-quarter is set to soar by 28%.

Bloomberg News reports:

Taiwan Semiconductor Manufacturing Co, the world's No. 1 contract chipmaker and a key supplier to Nvidia (NVDA) and Apple (AAPL), is forecast to report a net profit of $13.55 billion for the three months through September 30, according to an LSEG SmartEstimate compiled from 20 analysts.

SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate.

TSMC has already flagged a market-forecast-beating rise in third-quarter revenue of 30%. Any profit result above T$398.3 billion would mark the company's highest-ever quarterly net income and its seventh consecutive quarter of profit growth.

Mario Morales, group vice president at research firm IDC, said he expects TSMC's revenue to grow at least 30% to 35% this year.

\\"I am expecting that TSMC will continue to outperform its peers given the ongoing exponential growth of AI infrastructure investments and that the leading chip suppliers such as Nvidia and AMD have only one place to go - TSMC,\\" he said.

Read more here.

Economic data: No notable economic data.

Earnings calendar: Fastenal (FAST)

Here are some of the biggest stories you may have missed over the weekend and early this morning:

Trump downplays China trade tensions: 'It will all be fine!'

Big banks are riding high into earnings season kickoff

'Crushing their earnings': Wall Street expects AI to power stocks higher

Stock bubble dread grips central bankers in Washington

S&P 500 risks over 10% drop if trade tensions drag on: MS

Goldman sees US consumers paying more than half of Trump tariffs

TSMC rises as Q3 profit expected to soar 28% on AI spending boom

Fatal Xiaomi EV crash renews scrutiny on door handle design

Hamas frees Gaza hostages as Trump arrives in Israel

Here's a look at some of the top stocks trending in premarket trading:

MP Materials (MP) stock rose 11% in premarket trading on Monday following fresh trade tensions between the US and China after Beijing's export restrictions on rare earths fueled bets on alternative suppliers.

TSMC (TSM) stock rose 5% in premarket trading on Monday after analysts forecast that the chipmaker is set to report a new profit of $13.55 billion for the three months through Sept. 30, according to an LSEG SmartEstimate compiled from 20 analysts.

Warner Bros (WBD) stock rose 2% before the bell. David Ellison, the CEO of Paramount Skydance, may make a bid to buy all of Warner before the media giant splits, according to the WSJ.

The six biggest US banks will kick off Q3 earnings season this week amid lofty expectations for a 6% rise in profit, writes Yahoo Finance's David Hollerith.

He reports:

Expectations will be put to the test starting Tuesday morning, when JPMorgan Chase (JPM), Citigroup (C), Goldman Sachs (GS), and Wells Fargo (WFC) kick off the ritual. Bank of America (BAC) and Morgan Stanley (MS) get going on Wednesday.

Revenue from core lending, trading, and the dealmaking divisions is set to climb across the board.

For all but Wells Fargo, which has a smaller and younger Wall Street division, analysts expect investment banking and trading to climb for a seventh quarter straight. \\"You have markets at all-time highs. A lot of things are going on geopolitically. Interest rates and currency values are moving. It has all been very active,\\" Goldberg said. ...

Three months ago, these same lenders were still shaking off the uncertainty caused by tariffs that began this spring, which had frozen deals and muted corporate borrowing activity.

Meanwhile, global mergers and acquisitions deal volume has since surged past $1 trillion, while IPOs, corporate debt, and syndicated lending have also all picked up, according to Dealogic data.

Read more here.

Oil prices rose following comments from Trump that allowed investors to lower their hackles, following fears of an inflammatory tit-for-tat tariff exchange between the US and China.

Bloomberg reports:

Brent (BZ=F) advanced above $63 a barrel after plunging 3.8% on Friday in its biggest drop since August, while West Texas Intermediate (CL=F) was near $60.

Trump on Friday announced an additional 100% tariff on China as well as export controls on “any and all critical software” beginning Nov. 1, following moves by Beijing to add new port fees on US ships and curbs on exports of rare earths and other critical materials. On Sunday, Trump indicated willingness to reach a deal, while Beijing urged Washington to negotiate and said it wouldn’t hesitate to retaliate against threats.

“We’ll be fine with China,” the US president told reporters on Air Force One in early Asian hours on Monday, although the tariffs on Nov. 1 remained the plan. He also said he’d consider arming Ukraine with long-range Tomahawk missiles that would allow strikes deeper into Russia, which increases the risk of further disruptions to oil supply from the OPEC+ member.

Read more here.