AI Deals Ignite, Oil Sinks, and Tariffs Return: A Volatile Week on Wall Street

Daniel Ledenev
Oct 11
5 min read

👋 Welcome Back Investors! (October 6 to 10, 2025)

The second week of October opened with confidence as AMD’s AI chip partnership with OpenAI fueled tech enthusiasm and Fifth Third Bancorp’s $10.9B takeover of Comerica signaled fresh momentum in regional banking. Markets hit record highs early in the week, but optimism faded when President Trump’s renewed tariff threats on China reignited trade tensions, sending stocks lower into Friday. Meanwhile, oil prices climbed after a smaller-than-expected OPEC+ output hike, keeping inflation and energy trends in sharp focus for investors.

💻 AMD Strikes Landmark AI Chip Deal with OpenAI

AMD shares soared over 30% this week after announcing a multiyear agreement to supply artificial intelligence chips to OpenAI, a deal expected to generate tens of billions in annual revenue and give OpenAI the option to acquire up to 10% of AMD. The partnership will see hundreds of thousands of AMD’s upcoming MI450 GPUs deployed beginning in 2026, which are equivalent to the energy output of three Hoover Dams. Executives called the deal “transformative” for the company and the broader AI industry, as it positions AMD as Nvidia’s most serious competitor in high-end AI computing. OpenAI plans to build a one-gigawatt data center powered by AMD hardware to meet its growing computational needs. In return, AMD issued a warrant allowing OpenAI to purchase up to 160 million shares at a nominal price, vesting in stages based on chip deliveries and AMD stock milestones.

Analysts estimate the deal could add more than $100 billion in revenue over four years, reinforcing AMD’s role at the center of the AI hardware boom. The announcement also triggered movement across the semiconductor space, with Nvidia shares slipping and Broadcom holding steady amid speculation of intensified competition in the race for AI dominance.

🏦 Fifth Third Bancorp to Acquire Comerica in $10.9 Billion All-Stock Deal

Fifth Third Bancorp announced it will acquire Comerica Inc. in a $10.9 billion all-stock merger, creating the ninth-largest U.S. bank with roughly $288 billion in assets. The deal combines two of America’s biggest regional lenders and will significantly expand Fifth Third’s presence across the Southeast, Texas, and California, while strengthening its core position in the Midwest.

Under the agreement, Comerica shareholders will receive 1.8663 shares of Fifth Third for each Comerica share, valuing the offer at $82.88 per share. Once completed, Fifth Third investors will hold about 73% of the combined company, and Comerica shareholders will own 27%. Comerica CEO Curt Farmer will become vice chair of the merged bank, and Comerica’s chief banking officer Peter Sefzik will lead Fifth Third’s wealth and asset management division. CEO Tim Spence called the acquisition a “pivotal moment” that accelerates Fifth Third’s strategy to build density in high-growth markets. The merger follows a broader trend of regional bank consolidation, coming just weeks after PNC Financial’s $4.1 billion purchase of FirstBank. The Fifth Third–Comerica deal is expected to close by Q1 2026, pending shareholder and regulatory approval.

🌏 Trump Threatens 100% Tariff on China as Trade Tensions Escalate

Financial markets fell sharply this week after President Donald Trump threatened to impose an additional 100% tariff on Chinese imports starting next month, reigniting fears of a renewed trade war between the world’s two largest economies. The announcement followed Beijing’s move to tighten export controls on rare earth minerals, which are critical to U.S. manufacturing and defense industries. Trump also said the U.S. would impose new export restrictions on key software technologies, accusing China of becoming “very hostile” and attempting to hold the global supply chain “captive.” The remarks sent the S&P 500 down 2.7%, marking its steepest one-day decline since April.

China responded by launching an antitrust probe into Qualcomm and introducing new port fees on ships tied to U.S. firms, heightening tensions ahead of a planned meeting between Trump and President Xi Jinping. Analysts warn that the tariff threat could disrupt progress made since the two sides reached a fragile trade truce in May. Economists note that while the new tariffs would pressure U.S. consumers and importers, the bigger risk lies in supply chain disruption for critical materials, particularly rare earths used in EVs, smartphones, and defense systems. With China controlling the majority of global production, the standoff adds a fresh layer of uncertainty to an already fragile geopolitical landscape.

🛢️ Oil Prices Tumble to Five-Month Low on Trump Tariff Threats

Oil prices plunged Friday as global markets sold off sharply following President Donald Trump’s warning of new tariffs on Chinese imports. The announcement rattled investors and sent energy markets into a tailspin, with the benchmark West Texas Intermediate falling more than 4% to $58.90 per barrel, its lowest level in five months. Brent crude dropped to $62.73, while Western Canada Select slid to $48.68.

The selloff came as traders reacted to Trump’s social media comments threatening a “massive increase” in tariffs, escalating tensions after China tightened export rules on rare earth minerals, a sector critical to global manufacturing and defense industries. The move sparked a broad equity decline, with the Dow Jones shedding nearly 880 points, the Nasdaq down 3.6%, and the TSX losing 1.4%. Analysts say the renewed trade uncertainty is raising concerns about global growth and energy demand heading into the final quarter of the year. The week’s decline erased most of oil’s early-October gains, underscoring how vulnerable commodity markets remain to shifting U.S.–China rhetoric.

👀 Stocks to Watch: What This Week’s Moves Reveal

Markets swung sharply this week as optimism over major corporate deals collided with renewed trade war fears. Tech and regional bank stocks initially led gains before tariff threats and an oil selloff erased much of the week’s momentum. Here are the tickers that stood out:

Micron Technology (MU | 3.3%) – Could benefit from enthusiasm around AMD’s AI chip deal with OpenAI, as investors bet that rising GPU demand would spill over into the broader semiconductor supply chain.
PNC Financial Services (PNC | 7.3%) – Down nut should move higher alongside Fifth Third’s $10.9B Comerica acquisition, with analysts speculating that consolidation across regional banks could continue amid tightening margins and slower loan growth.
Apple Inc. (AAPL | 4.9%) – Fell late in the week as renewed U.S. and China tariff threats reignited concerns over iPhone supply chains and rising input costs from rare earth restrictions.
ExxonMobil (XOM | 2.2%) – Dropped with crude prices, as Trump’s tariff comments triggered a broad energy-sector selloff and sent West Texas Intermediate to its lowest level since May.
Lockheed Martin (LMT | 0.1%) – Should gain on renewed geopolitical tension after China tightened export controls on critical minerals used in defense technology, bolstering investor confidence in defense-sector stability.

🛎️That’s a Wrap!

The second week of October delivered a rollercoaster for investors. Markets started strong as AMD’s blockbuster AI chip deal with OpenAI sent tech stocks soaring and Fifth Third Bancorp’s $10.9B Comerica merger fueled optimism in regional banking. But sentiment flipped late in the week after President Trump’s threat to impose new 100% tariffs on China sparked a global selloff. Oil prices plunged to a five-month low, dragging energy shares with them, while the broader market logged its sharpest decline since April. With earnings season set to begin and geopolitical tensions running high, traders are bracing for another volatile stretch ahead

Until then, stay focused and stay curious. Catch you next week 👋