(Updates with final price moves, adds volume and gainers-losers)

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Broadcom ( AVGO ) jumps on OpenAI partnership

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Investors focus on bank earnings

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Bank results to kick off quarterly earnings season

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S&P 500 +1.56%, Nasdaq +2.21%, Dow +1.29%

By Sukriti Gupta and Noel Randewich

Oct 13 (Reuters) - Wall Street's main indexes ended

sharply higher on Monday, led by gains in Broadcom ( AVGO ) and other

chipmakers, after President Donald Trump struck a conciliatory

tone about renewed U.S.-China trade tensions, easing investor

worries.

Lifting sentiment, U.S. Treasury Secretary Scott Bessent said in

an interview with Fox Business Network that Trump was on track

to meet his Chinese counterpart in South Korea as the two sides

work on de-escalating trade frictions that grew late last week.

AI-related tech stocks were the biggest winners in Monday's

rebound. Broadcom ( AVGO ) surged almost 10% after partnering

with OpenAI to produce the startup's first in-house artificial

intelligence processors.

The Nasdaq notched its biggest one-day gain since May 27.

"AI continues to be the momentum driver, and it's not

surprising investors have purchased the dip," said Sam Stovall,

Chief Investment Strategist at CFRA Research, adding that

investors should remain cautious as long as Trump's dispute with

China remains unresolved.

Wall Street tumbled on Friday, with the S&P 500 and Nasdaq

posting their steepest weekly declines in months.

The latest rupture followed China's announcement on Thursday

that it would dramatically expand its rare earths export

controls. In retaliation, Trump on Friday said he would apply an

additional 100% tariff on imports from China and impose export

controls on all critical U.S.-made software from November 1.

However, over the weekend, Trump said "it will all be fine" and

that the U.S. did not want to "hurt" China. China on Sunday

blamed the U.S. for the escalation but did not roll out further

countermeasures.

Other AI-related chipmakers also gained, with Nvidia climbing

2.8% and Micron Technology jumping over 6%. The PHLX chip index

soared almost 5%.

JPMorgan Chase ( JPM ), Goldman Sachs ( GS ), Citigroup ( C/PN )

, and Wells Fargo ( WFC ) are set to release quarterly

results on Tuesday, kicking off an earnings season that

investors will watch closely for signs of how tariffs are

impacting Wall Street's largest companies.

Earnings reports will provide fresh clues on the economy at

a time when major official data releases remain delayed due to

an ongoing government shutdown. Analysts on average expect S&P

500 companies' third-quarter earnings to grow 8.8% from a year

ago, according to LSEG data.

The S&P 500 climbed 1.56% to end the session at 6,654.72

points.

The Nasdaq gained 2.21% to 22,694.61 points, while the

Dow Jones Industrial Average rose 1.29% to 46,067.58 points.

Ten of the 11 S&P 500 sector indexes rose, led by

information technology, followed by a 2.29% gain in

consumer discretionary.

Following Friday's steep drop and Monday's partial

recovery, the S&P 500 is about 1.5% below its record high close

reached on October 8.

In the Middle East, Hamas freed the last living Israeli hostages

from Gaza and Israel sent home Palestinian detainees as part of

a ceasefire deal pushed by Trump.

Oracle jumped 5.1% after at least two brokerages raised

their price target on the AI cloud firm.

Estee Lauder ( EL ) advanced 5.8% after a report that Goldman

Sachs ( GS ) upgraded the stock's rating to "buy" from "neutral".

Fastenal ( FAST ) dropped 7.5% after the industrial supplies

distributor missed third-quarter profit expectations.

Advancing issues outnumbered falling ones within the S&P

500 by a 2.5-to-one ratio.

The S&P 500 posted 7 new highs and 14 new lows; the Nasdaq

recorded 91 new highs and 120 new lows.

Volume on U.S. exchanges was relatively light, with 18.2

billion shares traded, compared to an average of 20.2 billion

shares over the previous 20 sessions.