US equities stage a sharp rebound fueled by AI optimism and the Broadcom OpenAI deal. Trade war fears resurface as China imposes sanctions. Gold hits a new all-time high.
Gold continues to shine amid trade tariff chaos
Key takeaways
- US equities rebound: On 13 October, the S&P 500 rose 1.6%, and the Nasdaq 100 gained 2.2% after a steep sell-off, supported by renewed AI optimism from Broadcom’s deal with OpenAI.
- Gold hits new highs: XAU/USD surged to a record US$4,180 amid Fed rate cut bets, the US government shutdown, and US-China trade tensions.
- Cautious sentiment returns: Futures turned negative as China imposed sanctions on a US-linked firm, reviving trade war fears ahead of major US bank earnings.
On Monday, 13 October, the US stock market recovered after the onslaught inflicted on last Friday, 10 October, by US President Trump's renewed threat of an additional 100% tariffs on Chinese products with effect from 1 November.
The S&P 500 jumped by 1.6% after a decline of 2.7% recorded last Friday, its worst single-day performance since April 2025, during the onset of the US White House's “Liberation Day” trade tariffs announcement. The Nasdaq 100 outperformed with a gain of 2.2% that rode on the tailwind of a positive Artificial Intelligence (AI) optimism news flow, where OpenAI forged another mega deal to purchase custom chips and networking components from Broadcom Inc.
Increased bets on Fed rate cuts, the continuation of the US government shutdown, and the uncertainties surrounding US-China trade tariffs have propelled Gold (XAU/USD) to another fresh all-time high, where it rallied by 2.3% to close at US$4,110 on Monday, 13 October.
In today’s Asia, Gold (XAU/USD) has seen some profit-taking after it hit a new all-time high intraday level of US$4,180 and pulled back to US$4,120 at the time of writing, with a modest gain of 0.3% from yesterday’s close. Overall, its short-term intraday bullish trend remains intact as Gold (XAU/USD) still trades above the US$4,056 key short-term support.
The Nasdaq 100 and S&P 500 E-mini futures have slipped into negative territory, with intraday losses of 0.7% and 0.8%, respectively, as fears of a US-China trade war resurfaced. China has sanctioned the US units of a South Korean shipping giant and threatened further retaliatory measures against the shipping industry.
On top of the news flow of the US-China trade tariffs, other key risk events to watch today are the Q3 earnings results of major US financial institutions before the US session opens.
Our YouTube video above contains more insights and the latest intraday technical analysis on our Chart of the Day, US SPX 500.
