Wall Street Soars After Trump Eases Threats on China
Nine of the S&P 500’s eleven sectors closed higher, led by technology (+2.5%) and consumer discretionary (+2.3%).
Quick overview
- The New York Stock Exchange gained up to 2.2% due to reduced geopolitical tensions over tariffs between the U.S. and China.
- Wall Street's main indexes rebounded sharply on Monday after Donald Trump adopted a more conciliatory tone towards China.
- Big tech stocks led the recovery, with notable gains from Tesla and Nvidia, while Broadcom surged after being selected by OpenAI for AI chip development.
- In Asia, the Shanghai Composite and Hong Kong's Hang Seng fell, while Japan's Nikkei 225 declined amid political uncertainty.
The New York Stock Exchange gained as much as 2.2%, after a reduction in geopolitical tensions between the two powers over tariffs.
After Friday’s stumble, Wall Street’s main indexes rallied sharply on Monday following a softer tone from Donald Trump toward China in his comments on Sunday. The rebound occurred during a partial holiday in the U.S., which typically leads to lower trading volumes.
Although Trump had threatened last Friday to impose 100% tariffs on China starting November 1, and Beijing responded that it could take countermeasures, the U.S. president sounded more conciliatory in his remarks yesterday, posting on social media that the United States did not intend to “harm” China.
Wall Street Kicks Off the Week with Gains
The Dow Jones Industrial Average, made up of 30 blue-chip companies, rose 1.3% to 46,067.58 points, while the S&P 500, which tracks the largest U.S. companies, climbed 1.6% to 6,654.72. The Nasdaq Composite advanced 2.2% to 22,694.61.
Big tech stocks, which are especially sensitive to U.S.–China relations, had been the hardest hit in Friday’s selloff. On Monday, they led the rebound, with Tesla (+5.4%) and Nvidia (+2.8%) at the front of the recovery.
Among individual names, Broadcom (+9.9%) surged after OpenAI, the creator of ChatGPT, selected the company to build its first artificial intelligence chips in its push for greater computing power.
Nine of the S&P 500’s eleven sectors closed higher, led by technology (+2.5%) and consumer discretionary (+2.3%). Within the Dow Jones, Nike (+3.3%) stood out after falling 4% on Friday due to Trump’s previous comments.
This week, investors are watching earnings reports from major banks, starting Tuesday with Goldman Sachs (+2.9%), JPMorgan Chase (+2.4%), and Wells Fargo (+1.7%), followed on Wednesday by Bank of America (+0.43%) and Morgan Stanley (+2.15%).
Politics Steer Markets in Asia and Europe
In Asia, the surprise came from Japan’s political crisis, while in Europe attention remains on the formation of the new French cabinet.
In this context, the Euro Stoxx 50 rose 0.7%, hovering near its all-time high. Gains were broad across the region: Germany’s DAX increased 0.6%, and France’s CAC 40 climbed 0.2%. Outside the eurozone, the UK’s FTSE 100 advanced 0.2%.
In Asia, by contrast, the Shanghai Composite in China fell 0.19%, while Hong Kong’s Hang Seng dropped 1.52%, followed by South Korea’s Kospi 50, which declined 1.01%. However, the main focus was on Japan, where the Nikkei 225 slid 1.01% amid political uncertainty.
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