FX.co ★ US Stocks Rally as Tariff Fears Ease

On Monday, Wall Street's primary indexes experienced a significant surge, making a strong recovery from the sharp declines observed last Friday. This upswing came in the wake of President Trump's conciliatory remarks regarding US-China trade tensions, where he reassured that relations with Beijing would "all be fine." The S&P 500 and Nasdaq 100 increased by 1.6% and 2.1%, respectively, while the Dow Jones rose by over 600 points. This upward momentum was driven by investors' renewed interest in risk assets, fueled by Trump's statements. His comments served to alleviate concerns of a potential trade war escalation, after his previous threats to impose a 100% tariff on Chinese goods had resulted in a market value reduction of approximately $2 trillion. Technology stocks spearheaded the gains, with Nvidia and AMD advancing roughly 2.5% and 1%, respectively. Meanwhile, Oracle experienced a significant rise of 5.5%, and Broadcom surged by 10% following the announcement of its AI partnership with OpenAI. Nonetheless, investors exercised caution amid a prolonged government shutdown and delays in economic data releases. Focus has now shifted to the commencement of earnings season, with key financial institutions such as JPMorgan, Goldman Sachs, and Citigroup poised to report their quarterly results this week.