10/14 Theme stocks jump on JPMorgan’s strength amid gains on U.S. stock, Trump, Bessent comments

U.S. stocks opened higher on the back of U.S. President Trump’s soft-spoken comments on China over the weekend. On top of that, the gains were magnified when U.S. Treasury Secretary Bessent met with his Chinese counterpart over the weekend and mentioned that a U.S.-China summit would take place soon. In addition, it was affected by JPMorgan’s announcement of a $1.5 trillion injection of funds into national security, which led to soaring number of themed stocks such as quantum and rare earth elements. After all, the market continued to rise on favorable factors and was characterized by the rise of other themed stocks such as AI (Dow +1.29%, Nasdaq +2.21%, S&P 500 +1.56%; Russell 2000 +2.79%; Philadelphia Semiconductor Index +4.93%)

*Variants: Treasury Secretary Bessent, JPMorgan

The U.S. stock market rose after U.S. President Trump took a step back over the weekend, claiming that the U.S. wants to help China and does not want to be harmed. On top of that, Treasury Secretary Bessent said that China’s recent measures, including rare earth regulations, are assumed to have been led by hardliners, not by President Xi Jinping. In addition, Trump’s remarks are aimed at giving China time to meet and talk. U.S.-China contacts over weekend, mentioning expectation of Trump and Xi Jinping meeting; U.S. stocks extend gains on related comments

Meanwhile, JPMorgan has announced that it will pursue a total of $1.5 trillion worth of “security and resilience initiatives” over the next 10 years to strengthen the economic security and supply chain resilience of the United States. The core of the program is the supply of large-scale funds to strategic industries in the United States, of which JPMorgan plans to invest up to $10 billion directly to help specific companies grow, innovate, and strengthen their manufacturing competitiveness. The investment field consists of four areas: supply chain and manufacturing, defense, aerospace energy independence and resilience, advanced, and strategic technologies. Specifically, it includes a total of 27 sub-industries, including shipbuilding, nuclear power, nanomaterials, and critical defense components.

JPMorgan announced its long-term strategy, including hiring additional professionals and establishing an external advisory committee to implement this. CEO Dimon stressed that the plan is “a measure for the U.S. to reduce its foreign dependence on key minerals, products and manufacturing and increase its self-sufficiency capabilities.” “U.S. security depends on the robustness and resilience of the economy. We must act now,” he said. The announcement is in line with the U.S. government’s push to expand investment in key industries and is considered part of the industrial restructuring drive aimed at restoring the manufacturing base in the U.S. and achieving energy independence. Related news caused a surge in theme stocks, which had been the talk of the market, such as quantum computers, secondary batteries, drones, and nuclear power

*Featured Stocks: Tesla, Micron, Quantum Computer And Other Major Theme Stocks Jump

Semiconductors: Broadcom Jumps On Announcement Of Cooperation With OpenAI
Nvidia (+2.82%) rose after Meta and Oracle announced the introduction of a “spectrum-X Ethernet switch” to speed up their AI data center networks following expectations of easing the U.S.-China conflict. Broadcom (+9.88%) gained a lot after announcing the development of OpenAI, customized AI chips, and customized AI accelerators with a scale of 10 gigawatts. AMD (+0.71%) rose on news that Qualcomm (+5.33%) acknowledged the limited rise and will take action against China’s anti-trust investigation. TSMC (+7.92%) surged as expectations were highlighted ahead of the earnings announcement on the 16th. Micron (+6.15 percent) rose after BNP Paribas upgraded its investment rating by two notches to above market returns and raised its target price to $270. Most semiconductor companies, including Ram Research (+4.90 percent) and AMAT (+4.54 percent), are also strong on hopes of easing U.S.-China concerns. The Philadelphia Semiconductor Index rose 4.93 percent.

AI Theme: U.S.-China Conflict Eases, Rises On JPMorgan’s Announcement
Big Bear AI (+22.02%) rose sharply last Friday on news of a partnership agreement with the U.S. Navy and turned downward to Trump’s remarks, but today it surged reacting to the issue. C3AI (+8.15 percent), Paladine AI (+15.80 percent), and Soundhound AI (+10.25%) rose. Cloud-related companies such as Snowflake (+2.11 percent), Cloud Flare (+4.09%) and server companies such as Super Microcomputer (+3.58%) and HP (+7.05 percent) also rose. JPMorgan’s announcement is one of the reasons for the increase. However, Arista Network (-4.32%) fell as Nvidia announced that it would supply the Spectrum-X Industrial Switch to Meta and Oracle, reflecting intensifying concerns over competition. In particular, Meta-oriented sales account for 15 percent.

Automobiles: Production Production Increases In China, Jumps On JPMorgan’s Announcement
Tesla (+5.42%) rose as expectations for easing the U.S.-China conflict were highlighted. Rare earths are essential for electric vehicle production. In addition, JPMorgan’s announcement boosted expectations for SpaceX and expansion of the autonomous driving industry. To meet demand, the Shanghai Gigafactory’s fourth-quarter output increase has a positive impact on investor sentiment, expanding its gains. Other automakers, such as GM (+0.49%) and Ford (+1.14%), have limited gains as it emerged that companies are trying to resolve the issue of ending tax credits through price discounts amid easing the U.S.-China conflict.

Secondary Batteries, Lithium, Rare Earth Stocks: U.S.-China Conflict Eases, Jumps On JPMorgan’s Announcement
Quantumscape (+15.58 percent) surged as the U.S.-China conflict over rare earths eased. Analysts say that rare earths are essential and solid batteries based on lithium metal cathodes are expected to innovate electric vehicle batteries. Bloom Energy (+26.52 percent) rose sharply after announcing a strategic partnership worth 5 billion dollars with Brookfield. Plug Power (+14.04%), Fuelsel Energy (+9.83%) and Ballard Power (+6.73%) also rose. Lithium-related companies such as Albemarle (+7.21%) and Lithium America (+12.55%) also rose on the news of JPMorgan’s 1.5 trillion dollar investment. Critical Metals (+55.41%), MP Materials (+21.34%) and American Resources (+22.06%) eased their rare earth issues, but JPMorgan announced the plan