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Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadmani and today is Tuesday, October 14th. In today's episode, we'll tell you about China's latest move to escalate trade tensions with the US and why silver prices are hitting record highs. We also recap earnings from big banks and tell you about a deal between AMD and Oracle. Then stick around to the end of the show to find out how long the average bul market lasts and what that can tell us about the current bull market. We got a great show for you today. Let's go. The markets bounced back on Monday to start the week after President Trump softened his tariff threats on China over the weekend. The S P 500 was up 1.5% and the Nasdaq jumped more than 2%, recovering about half of Friday's losses. Now, we've seen this story play out before. We know where Trump threatens tariffs, causes the markets to panic, only to walk it back. And the markets bounce back. But you know, this time China doesn't seem to be backing down. In fact, they just escalated trade tensions today by banning Chinese companies from doing business with the US Subsidiaries of a South Korean shipbuilder. This was in response to the US Government charging port fees to Chinese made ships at US Ports. And on top of that, China doesn't seem to be easing up their rare earth export restrictions, but which was the reason for Trump's tariff threats on Friday in the first place. So China seems to be escalating things and that's spooking investors. Right now I'm recording this in the pre market and I'm seeing red across the board. We'll have to see how President Trump responds to this. I mean, if he escalates things, there's going to be more chaos in the markets. I guess I have to refresh my true social feed all day to see what he posts next. Now with all this uncertainty, investors continue to pile into safe haven assets like gold and silver. You know, we've talked a lot about gold on this show over the last couple months. It continues its record breaking rally. Now it's trading about $4,100 an ounce for the first time. But silver is actually shining even brighter than gold. It just hit a record high for the first time since the 1980s. It's now trading north of $53 an ounce. You know, silver is actually outperforming gold this year. It's up 78% compared to gold's 53% gain. And the surge is being fueled by both demand and also scarcity. There's actually not enough physical silver right now due to production constraints and also rising use in solar panels and AI chips. So if that continues, this silver rally might have some legs. So, yeah, there seems to be a lot of chaos and uncertainty in the markets right now, not to mention there's a government shutdown with no end in sight. So I said on Monday's episode we were in for a roller coaster of a week and that seems to be playing out. So far, the markets continue to be the best show in the world. It's. And we're going to be staying on top of all the drama. So make sure you guys are subscribed to the podcast and tuning in every day to stay in the loop. Let's run through some headlines. We got a wave of big bank earnings this morning, and I got to say, Wall street is feeling pretty good about themselves right now. So let's go through some of the notable earnings, starting with JP Morgan. The biggest bank in the world reported a 12% jump in profits to $14 billion for beating analysts expectations. JP Morgan benefited from an increase in M and A activity and market volatility. Their investment banking FEES were up 16% and trading revenues climbed 25%. CEO Jamie Dimon said the US economy remains resilient, but he warned about sticky inflation, elevated asset prices, and the heightened geopolitical uncertainty. Next up, let's talk about Goldman Sachs. They crushed it this quarter. Profits surged 3.37percent to $4.1 billion, which is well above forecast. Their investment banking division was the main driver, with revenues in that department jumping 42% again, thanks to a flood of M and A activity and private equity deals. Goldman also announced that they are acquiring a VC firm called Industry Ventures. Yeah, Goldman seems to be crushing it these days. You know, they had a rough few years following the pandemic, but now they're firing on all cylinders. Their stock is at all time highs. And I wonder if this means that CEO David Solomon will start dating Cjing again. I know he gave that up to focus on being a CEO, but maybe he should bring it back. And finally, let's talk about Wells Fargo. They are also making a comeback. Their profits were up 9% to $5.6 billion last quarter, beating estimates. On top of that, regulators remove the asset cap on Wells Fargo, which is a big deal. Wells Fargo can now finally start growing again after years of being handcuffed from their fake account scandal. If you guys remember that, let's just hope that they don't do anything shady this time. And similar to the other banks that I just mentioned, Wells Fargo's investment banking division was a driver of their growth last quarter. Revenues jumped 25%. So yeah, across the board, big bangs are riding high on the M and A boom and taking advantage of the chaos in the markets. Let's shift gears and talk about yet another major AI chip deal. This time it's with Oracle and AMD. Oracle just announced that they're going to be deploying 50,000 of AMD's new Mi 450 AI chips starting in the second half of 2026. This is the second major move by AMD in the past couple of weeks to become a legit competitor to Nvidia's dominance in the AI chip space. Remember they did that Massive deal with OpenAI last week where they gave up 10% of the company in exchange for OpenAI to buy their chips. And now Oracle is coming in with a massive order as well. AMD CEO Lisa Su said these Mi450 chips are designed to be a true alternative to Nvidia's GPUs and Oracle will be installing them in their data centers pretty soon. Now remember, OpenAI also has a $300 cloud partnership with Oracle where Oracle is going to provide OpenAI with cloud capacity. And OpenAI also has a deal with AMD, which I just mentioned, to buy their chips. But then now Oracle has a deal with AMD to buy their chips. So does that mean that the AMD chips that Oracle is buying will ultimately be used by OpenAI? Right, I need to update my AI money flow chart to follow all these moves. But yeah, I think the big picture here is that AMD is making a legit point push to take market share from Nvidia. I wonder if Jensen is going to send his cousin Lisa Sue a Christmas card this year. Let's talk about some stocks making moves today. Shares of US Rare earth miners are ripping higher this morning as China has shown no signs of backing down on rare earth export restrictions. We talked about that in the A block. Shares of companies like critical metals are up 36 in pre market trading. US rare earth is up 11% and MP materials is up 8%. And this is following a big move up on Monday for all these companies as well. You know, investors are betting that if China keeps tightening the screws on rare earth exports, then US miners will get a wave of government support and investments to boost domestic production. For some context here, China produces about 70% of the world's rare earths and they process nearly 90% of the global supply supply. So the more that China restricts, the more U S miners stand to gain. And that's what's pushing the stock prices of these companies higher. Now on the flip side, shares of General Motors are down this morning after the company announced that it would take a $1.6 billion hit from downsizing its EV manufacturing. GM says they're reassessing their EV strategy after the government ended the 7, 500 federal tax credit for electric vehicles back in September, which is likely to reduce demand. As a result, shares of GM are down nearly 12% this morning in reaction to the the announcement. Let's wrap the show with the fun fact the current bull market just turned three years old and it's been one heck of a run. The S P 500 has gone up 83% since the rally began in October of 2022. Now, looking at historical data, there have been 14 bull markets since 1950, including the current one, and the average bull market lasted 4.6 years, with the S&P 500 returning 160%. So this current bull market is still relatively young and it might still have some juice left. Now, not a surprise here, but this current bull market has been powered mostly by tech and the hype around AI, but it is starting to broaden now. Small caps, industrials and utilities are finally starting to join the party. So yeah, let's hope that we're celebrating the bull market again this time next year. A bull market officially ends when stocks drop 20% or more from their peak, which is the start of a bear market. Now bonus fun fact. The longest bull market on record lasted more than 12 years starting in 1987 and going to the dot com crash in the year 2000. I mean it would be crazy if this bull market lasted until 2034. We might finally have GTA 6 by then. Well all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like 7 extra seconds, consider giving us a 5 star rating on Apple, Spotify, YouTube, wherever you listen to your podcast. And if you are listening on Spotify, don't forget to vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening, watching and commenting. Shout out to Mike and Connor for all the work behind the scenes and we'll see you guys back here tomorrow.
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