Wall Street Rebounds as Trump Softens Tone on China Trade Tensions
After a rough end to last week, Wall Street made a strong comeback on Monday, driven by gains in major chipmakers and a softer tone from former U.S. President Donald Trump regarding trade relations with China.
The S&P 500 climbed 1.6%, while the Dow Jones Industrial Average rose 1.3%, and the Nasdaq Composite surged 2.2%. The rebound helped the market recover a significant portion of Friday’s losses, which had been triggered by renewed trade tensions between the world’s two largest economies.
From Tensions to Temporary Relief
On Friday, Trump had threatened to raise tariffs on Chinese goods after Beijing tightened restrictions on rare earth exports—materials vital for electronics, vehicles, and aircraft manufacturing.
However, over the weekend, Trump appeared to take a more conciliatory approach, writing on Truth Social, “The U.S.A. wants to help China, not hurt it!!!”
Analysts said investors welcomed the shift in tone, even if uncertainty remains. “Markets woke up Monday to the smell of détente — that familiar scent of risk-on optimism,” said Stephen Innes of SPI Asset Management. “But let’s be clear: this isn’t détente, it’s negotiation theatre,” he added.
Chipmakers Lead the Surge
Semiconductor companies were among the day’s biggest gainers. Micron Technology jumped 6.2%, Broadcom rallied 9.9%, and Nvidia added 2.8%, lifting the broader tech sector.
What’s Next for Investors
With U.S. government funding talks still in limbo, attention now shifts to the start of the earnings season, as major U.S. banks, United Airlines, and Johnson & Johnson prepare to release quarterly results.
Global Market Snapshot
Asian markets had a mixed session. Hong Kong’s Hang Seng Index fell 1.5%, and the Shanghai Composite slipped 0.2%, while South Korea’s Kospi declined 0.7%. In Europe, Germany’s DAX and France’s CAC 40 each gained 0.4%, and Britain’s FTSE 100 remained flat.
Meanwhile, China reported an 8.3% rise in global exports for September — the strongest growth in six months — but exports to the U.S. plunged 27%, marking the sixth consecutive month of double-digit declines.
Source: Wall Street takes back some of Friday’s losses as Trump softens tone on China trade talks