Dow jumps 400 points as Trump post eases concern around U.S.-China trade tensions
Stocks surged on Monday, rebounding from Friday’s sell-off after President Donald Trump said trade relations with China “will all be fine.”
The Dow Jones Industrial Average jumped 408 points, or 0.9%. The S&P 500 climbed 1.3%, while the Nasdaq Composite popped 1.6%.
AMD rose more than 3% along with Nvidia and Oracle. Broadcom jumped more than 7% after making its partnership with OpenAI official on Monday morning.
Those moves come after Trump’s Truth Social post on Sunday suggested to investors the president may not follow through on his threat to post a “massive increase of tariffs” on China. That comment on Friday brought the U.S. trade war with China back to the fore, and sent stocks tumbling in a rout that wiped out $2 trillion in market value.
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I,” Trump wrote. “The U.S.A. wants to help China, not hurt it.”
Vice President JD Vance echoed those sentiments over the weekend. He told Fox News that the U.S. will negotiate if Beijing is “willing to be reasonable,” though he added that the U.S. has “far more cards” if not.
“The underlying tensions and uncertainty remain, and we still don’t think an all-encompassing deal is anywhere close, but this tamps down concerns about the risk of 100% tariffs or disruptive export controls while talks continue,” said Tobin Marcus, head of U.S. policy at Wolfe Research. “Trump seems to be telling investors they can safely buy the dip, and given their track record this year of doing so even when it seemed risky, we expect markets will accept this invitation.”
Source : Cnbc.com
