GTC Conference Boosts Tech Stocks; Nvidia Nears $5 Trillion Market Cap.

Japan-U.S. Summit: Investment Agreement Signed

Key Agreements

On the morning of October 28, Japanese Prime Minister Fumio Kishida met with U.S. President Donald Trump in Tokyo. The two leaders signed two agreements focusing on trade investment and critical mineral supply chain security.

• The first agreement aims to implement Japan's $550 billion investment plan in the U.S., targeting sectors like energy, AI, and critical minerals. This follows a previous trade agreement in July, where the U.S. agreed to impose a 15% tariff on Japanese goods, lower than the initially threatened 25%.

• The second agreement focuses on cooperation in the mining and processing of rare earth and other critical minerals to ensure supply chain security and reduce dependency on single sources.

Trump’s Visit to South Korea

President Trump is set to meet with South Korean President Yoon Suk-yeol to finalize a $350 billion investment commitment, a core part of the U.S.-Korea trade agreement. Key details regarding investment structure and profit sharing are still under discussion. The agreement will set a 15% tariff cap on U.S. goods, potentially disadvantaging South Korean automakers.

OpenAI's Infrastructure Investment

OpenAI CEO Sam Altman announced that the company’s total infrastructure investment commitment exceeds $1.4 trillion, with plans for an IPO being a likely option due to funding needs. The goal is to build infrastructure capable of achieving 1 GW of computing power weekly.

U.S. Government Shutdown Impact

The U.S. Senate failed to pass a bill to end the government shutdown, disrupting the Federal Reserve's access to new economic data. This has delayed the release of key economic indicators, including the Consumer Price Index (CPI) and employment reports.

Market Reactions

Gold Prices and ETFs

Gold prices fell below $3960 per ounce, with gold ETFs experiencing their largest single-day reduction in six months, shedding 448,706 ounces.

Stock Market Performance

The major U.S. indices reached new highs, driven by tech giants like Microsoft and Nvidia. The S&P 500 closed at 6890.89, while the Nasdaq and Dow Jones also set record highs.

Nvidia's GTC Conference Highlights

Nvidia's CEO Jensen Huang announced a significant increase in chip shipments and projected $500 billion in revenue from new chips over the next five quarters. The company is also collaborating with various firms to integrate AI into their products.

Other Notable Developments

• Lucid Group announced a partnership with Nvidia to launch Level 4 autonomous vehicles.
• Eli Lilly is collaborating with Nvidia to build a supercomputer for drug discovery.
• UPS announced a significant workforce reduction of 48,000 positions, leading to a nearly 7% increase in its stock price.

Conclusion

The recent developments in U.S.-Japan relations, the ongoing government shutdown, and the performance of major tech stocks highlight the dynamic nature of the current economic landscape. Investors are closely monitoring these events as they unfold.