Closing Bell: Markets Up, Qualcomm Enters AI Race, Rare Earths Slide

Key points

• Markets closed higher with gains in the S&P 500 (+1.23%), Nasdaq-100 (+1.83%), and Russell 2000 (+0.28%), led by Communication Services, Consumer Discretionary, and Information Technology sectors.
• U.S.–China trade optimism lifted sentiment as leaders plan to meet Thursday; potential agreements include delayed rare-earth export controls and increased Chinese purchases of U.S. soybeans.
• Qualcomm launched new AI datacenter chips, expanding its partnership with Humain and challenging Nvidia and AMD, while rare-earth stocks fell on news of eased export restrictions.

Markets ended the day higher, with the S&P 500 (SPX) up +1.23%, the Nasdaq-100 (NDX) advancing +1.83%, and small caps represented by the Russell 2000 (RUT) rising 0.28%. Communication Services, Consumer Discretionary, and Information Technology sectors led the gains, while the Materials and Consumer Staples sectors moved lower. Markets appear enthusiastic about improving U.S.–China trade relations as President Trump and President Xi plan to meet on Thursday to discuss trade and potentially announce a framework agreement. The deal is expected to include China delaying rare-earth export controls by one year, the U.S. holding off on the 100% tariff threat, and China potentially increasing purchases of U.S. soybeans.

Qualcomm Unveils Two Datacenter AI Chips

Qualcomm announced the launch of its AI200 and AI250 chip-based accelerator cards and racks for data centers in an effort to gain market share in the inference AI market, challenging Nvidia (NVDA) and Advanced Micro Devices (AMD). The company also announced the expansion of its existing AI partnership with Saudi Arabia–based Humain, which will be the first customer for the newly announced chipsets.

Rare Earth Stocks Tumble

Domestic rare-earth mining stocks pulled back after Treasury Secretary Scott Bessent suggested that China may delay rare-earth export controls for at least one year, potentially easing near-term market pressures. MP Materials, Lithium Americas Corp (LAC), and Trilogy Metals were all down in today’s session as a result.

DOE, AMD Partner on $1B Supercomputing Project

The United States Department of Energy established a $1 billion partnership with Advanced Micro Devices (AMD) to build two supercomputers designed to tackle complex scientific challenges, including cancer treatments, national security issues, and nuclear energy research. The first supercomputer, called Lux, is expected to be constructed and brought online within the next six months and will leverage some of AMD’s most advanced chips.

Key Market Events for Tomorrow

• 9:00 AM ET: S&P/CS Composite-20 HPI y/y
• 10:00 AM ET: Richmond Manufacturing Index
• 1:00 PM ET: 7-Year Note Auction

Notable Earnings for Tomorrow

Premarket: GLW, DHI, PYPL, RCL, UPS, UNH, VFC, W

Postmarket: BE, BKNG, CZR, EA, MDLZ, STX, V