Dow, S&P 500, Nasdaq stage comeback as Trump tempers tariff talk toward China

US-based rare earth producers MP Materials (MP), USA Rare Earth (USAR), and Ramaco Resources (METC) saw their stocks extend gains on Monday amid a recent upswing as China has expanded restrictions on its exports of the metals.

MP Materials rose over 22% Monday midday following an 8% jump on Friday. USA Rare Earth shares were up 19%, while Ramaco climbed 11%. The latter two stocks are up 48% and 34%, respectively, over the past five trading sessions.

The US government became MP Materials’ largest shareholder with a $400 million investment in July, as the Trump administration has taken a highly unusual approach to government intervention in the corporate world.

China’s rare earths export curbs were part of a broader set of trade moves that led to Trump’s threat of 100% tariffs on the country last Friday, which he appeared to back off from on Monday.

Tesla (TSLA) shares added 3% in Monday’s trading session after dropping 5% Friday during a broader stock market rout.

Yahoo Finance’s Pras Subramanian reports:

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Shares of a basket of nuclear stocks, including the Sam Altman-backed reactor maker Oklo (OKLO), were soaring by double-digits Monday morning after a handful of bullish headlines.

Urenco, the only active domestic supplier of low-enriched uranium, the form used in commercial power-generating reactors, said that its New Mexico enrichment facility will expand capacity by roughly 15% between 2025 and 2027, the Midland Reporter-Telegram reported.

Shares in Oklo were up more than 14% in mid-morning trading, while shares in NuScale Power (SMR) and NANO Nuclear Energy (NNE), two other reactor designers, were up more than 12% and more than 13%, respectively.

An increased supply of enriched uranium would be a boon for companies such as these, which are working to develop a series of small-form reactors that take less time to build than the traditional nuclear plant behemoths.

Energy Fuels (UUUU), the largest uranium provider in the country, was up more than 17% on the news, as increased enrichment capacity from Urenco would mean a healthier pipeline for Energy Fuels’ supply. Centrus Energy (LEU), the newest major entrant into domestic uranium enrichment and one of only two companies in the country licensed to enrich uranium up to “high-assay” low-enrichment levels, was rallying by 9%.

Also on Monday morning, a government-appointed panel in India published a report saying the Modi government should cut nuclear development timelines, secure long-term uranium supplies, and expand the country’s reprocessing capacity, according to Reuters — a bullish signal for global uranium demand.

The spot price of uranium (UX=F) was hovering just below $79 per pound around 12 p.m. ET, up more than 2% through morning trading and adding to a gain of 8% on the year, according to pricing data from Trading Economics.

Beyond Meat (BYND) stock plummeted more than 47% Monday as the company said most of its bond investors have accepted a debt swap that will result in the issuance of more than 300 million new shares in the company.

For the debt swap, $1.1 billion worth of convertible notes with 0% interest rates that were set to mature in 2027 are being exchanged for $200 million of new notes with interest rates of 7% that are set to mature in 2030, as well as 316 million new shares of common stock.

The move gives Beyond Meat more time to pay back its creditors but comes at the cost of significant dilution for shareholders.

Beyond Meat stock has fallen 84% over the past 12 months and is far below its high of over $196 shortly after the company went public in 2019. Shares traded around $1 on Monday.

Intel (INTC) stock was downgraded to Underperform from Neutral by Bank of America analyst Vivek Arya, who said its recent upswing had gone “too far, too fast.”

Shares of the struggling chipmaker have surged in recent months following the investments of Japan-based SoftBank Group (SFTBY), the US government, and Nvidia (NVDA). Nvidia’s investment goes hand in hand with a collaboration to design data center and computer chips with Intel.

Arya said that despite the investments improving Intel’s balance sheet, the stock’s run-up was overdone because company’s “competitive outlook remains challenged with no discernible AI portfolio/strategy,” while its chips for data center servers remain “uncompetitive” and its new investment from the US government challenges any divestment of its loss-making manufacturing business (Intel Foundry Services, or IFS).

Intel last week announced more details about computer and data center server chips made with its latest manufacturing process, 18A — a technology whose success is critical to proving that Intel’s manufacturing business is capable of taking on external customers.

Arya, however, was skeptical. He noted that 18A was initially intended as a process for both Intel’s own products and external customers, but it’s now being used only for internal manufacturing.

He said he “would not be surprised” if Intel’s manufacturing business made further changes and delays to its technology roadmap intended to bring in outside customers — its upcoming processes are known as 18A-P and 14A — which is critical to the success of the segment.

Nvidia (NVDA) led the “Magnificent Seven” Big Tech stocks higher on Monday as the broader market rebounded from a dismal trading day on Friday.

Nvidia shares jumped as much as 3.7%, while Alphabet (GOOGL) and Tesla (TSLA) rose nearly 2%.

Amazon (AMZN) and Meta (META) added over 1.5%. Microsoft (MSFT) and Apple (AAPL) stocks climbed almost 1%.

The stocks’ gains were fueled by President Trump’s changed tone on China after the US president threatened 100% tariffs on the country on Friday, prompting a rout that tech stocks led.

Also pushing tech stocks up: hopes for future AI demand were boosted on Monday, as Broadcom (AVGO) announced a deal to make custom chips for OpenAI.

Broadcom (AVGO) stock jumped 6% at the open on Monday after the company said it will build 10 gigawatts of custom AI chips for OpenAI (OPAI.PVT). Shares climbed as much as 12% in premarket trading.

To put that figure in perspective, Meta’s (META) massive $10 billion data center in Louisiana, spanning 4 million square feet, is set to deploy around two gigawatts of computing power — a feat that’s already on track to strain the state’s power infrastructure.

“By building our own chip, we can embed what we’ve learned from creating frontier models and products directly into the hardware, unlocking new levels of capability and intelligence,” OpenAI president Greg Brockman said.

OpenAI’s deal with Broadcom is the latest of its recent partnerships with chipmakers. The ChatGPT-maker is also working with Nvidia (NVDA) to deploy at least 10 gigawatts of computing power to train and run OpenAI’s models, a collaboration connected to Nvidia’s $100 billion investment in the AI company. OpenAI also recently announced a multibillion-dollar deal with Advanced Micro Devices (AMD) to receive more than 6 gigawatts of its AI chips.

The massive figures in terms of computing power highlight Big Tech’s AI ambitions, even as they are already straining the US power grid. Not to mention, OpenAI has yet to turn a profit, and its ability to meet its revenue targets remains in question.

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The tech-heavy Nasdaq Composite (^IXIC) led a rebound in stocks Monday at the open.

The Nasdaq jumped nearly 1.8%, while the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) added 0.9% and 1.25%, respectively.

Stocks jumped as Trump dialed back his tariff threat on China and as AI demand hopes were boosted by OpenAI’s deal with Broadcom (AVGO).

The moves come after stocks saw their worst day since April on Friday.

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:

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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:

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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.