01:35 PM EDT, 10/13/2025 (MT Newswires) -- US equity indexes jumped after midday Monday as President Donald Trump softened China tariff threats and a deal between Broadcom ( AVGO ) and OpenAI boosted the so-called AI trade.

The Nasdaq Composite jumped 2.1% to 22,666.5, with the S&P 500 up 1.6% to 6,655.4 and the Dow Jones Industrial Average 1.3% higher at 46,058.2, following the sharp sell-off on Friday. All sectors except consumer staples advanced intraday. Technology, consumer discretionary, materials, and communication services led the gainers.

"Don't worry about China, it will all be fine," US President Donald Trump said in a Truth Social post Sunday. On Friday, Trump announced additional tariffs of 100% on China, effective Nov. 1, as well as export controls on "any and all critical software." He also threatened to cancel a meeting with Chinese President Xi Jinping, following Beijing's reported decision to impose new export controls on rare earth minerals.

"Highly respected President Xi just had a bad moment. He doesn't want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!" Trump added.

A natural way out of the US-China impasse is a 'deal' whereby China imports more from the US, the US merely maintains the low-tariff status quo, and both sides reverse the many non-tariff trade barriers, according to a note from Macquarie Group on Monday.

"But with Trump facing serious domestic constraints, China knows it doesn't have to concede so easily," Thierry Wizman, global foreign-exchange and rates strategist at Macquarie, said in the note. This "game of chicken" is likely to irritate markets, as was the case last Friday, until the deadline for a deal approaches, he added.

Meanwhile, in company news, Broadcom ( AVGO ) and OpenAI, which counts Microsoft ( MSFT ) as a major investor, announced on Monday that they are launching a partnership to deploy 10 gigawatts of OpenAI-designed artificial intelligence accelerators. Shares of Broadcom ( AVGO ) surged 10% intraday, the top gainer on the S&P 500 and the Nasdaq.

All Magnificent-7 stocks were up, with Tesla (TSLA) leading the pack of mega-caps with a significant combined weight in each of the three benchmark indexes.

Morgan Stanley said it emphasized "looking through the noise of tariffs" to find the signal, that is, positive trends are already in place, according to a research note. "To reiterate: deregulation, extensive tax cuts for businesses and households, a trajectory for further Fed interest rate cuts, and a solid trend for further tech spending."

In federal shutdown news, the Senate has failed seven times to pass funding bills that would end the political impasse, which entered its 13th day on Monday. The next vote to resolve the crisis is scheduled for Tuesday, implying a further delay in the release of macroeconomic data.

Gold futures surged 3.2% to $4,128.50, touching yet another all-time high of $4,134.60 earlier in the session, and silver futures catapulted 6.5% to $50.33.

The US dollar also strengthened, gaining 0.8% against the Japanese yen to 152.29. The ICE US Dollar Index advanced 0.3% to 99.22.

West Texas Intermediate crude oil futures jumped 1.4% to $59.75 a barrel.