FX.co ★ Wall Street Rallies as Trump Eases US-China Trade Fears

On Monday, the primary U.S. stock indexes closed significantly higher, recovering from Friday's steep decline. This upswing was attributed to President Trump's more conciliatory remarks regarding U.S.-China trade tensions, in which he assured that relations with Beijing "will all be fine." In response, the S&P 500 and Nasdaq 100 rose by 1.6% and 2.2%, respectively, while the Dow Jones surged by 593 points, reflecting investors' renewed confidence in riskier assets following Trump's statements. These comments helped to quell fears of an escalating trade war, especially after the previous week's threat of imposing a 100% tariff on Chinese goods, which had erased approximately $2 trillion in market value. The advance was primarily driven by technology stocks, with Nvidia and AMD gaining 2.9% and 0.8%, Oracle experiencing a 5.1% rise, and Broadcom seeing a significant jump of 9.9% after announcing its AI collaboration with OpenAI. Despite this optimism, investors remained cautious due to the prolonged government shutdown and the delay in economic data releases. Attention now shifts to the beginning of earnings season, with major financial institutions such as JPMorgan, Goldman Sachs, and Citigroup scheduled to announce their results this week.