US Stocks Surge as Trump Signals Tariff Retreat, Dow Jumps 600 Points.

US stocks rallied on Monday after President Trump signaled a more conciliatory stance toward China, easing concerns over escalating trade tensions. The Dow Jones Industrial Average gained 600 points, or 1.3%, while the S&P 500 climbed 1.6%. The Nasdaq Composite jumped 2.1%, led by technology names like Broadcom, Advanced Micro Devices, and Nvidia. The rebound came after Trump wrote on Truth Social that trade relations with China "will all be fine."

US stocks rallied sharply on Monday following President Donald Trump's conciliatory remarks on trade relations with China, easing concerns over escalating trade tensions. The Dow Jones Industrial Average gained 600 points, or 1.3%, while the S&P 500 climbed 1.6%. The Nasdaq Composite jumped 2.1%, led by technology names like Broadcom, Advanced Micro Devices, and Nvidia Wall Street futures rally up to 1.7% on Donald Trump's 'don't worry about China' comment^[1].

The rebound came after Trump wrote on Truth Social that trade relations with China "will all be fine." The president's post indicated a softening of his earlier aggressive stance on tariffs against China, which had previously caused market volatility. Trump stated that he did not intend to "hurt" China and that the U.S. wants to help China rather than harm it Trump calls Xi ‘highly respected President’ who ‘had a bad moment’, Truth Social post hints at reconciliation with China on tariffs^[2].

The U.S. president's message follows his earlier announcement of a 100% tariff threat on Chinese goods effective November 1, which had contributed to a sharp decline in stock markets. The proposed tariffs would have significantly increased costs on Chinese imports and potentially triggered retaliatory measures from Beijing Trump calls Xi ‘highly respected President’ who ‘had a bad moment’, Truth Social post hints at reconciliation with China on tariffs^[2].

Markets also took note of China's restraint in not announcing new retaliatory tariffs in response to the U.S. measures. This move was seen as a sign of restraint from China, which has been defending its curbs on exports of rare earth elements Wall Street futures rally up to 1.7% on Donald Trump's 'don't worry about China' comment^[1].

Goldman Sachs chief economist Jan Hatzius expects the ultimate resolution to be an extension of the current tariff pause past November 10 along with some new but limited concessions from both sides Wall Street futures rally up to 1.7% on Donald Trump's 'don't worry about China' comment^[1]. However, investor sentiment remains cautious due to renewed global uncertainty Wall Street futures rally up to 1.7% on Donald Trump's 'don't worry about China' comment^[1].

The stock market reaction to Trump's conciliatory China statement suggests that markets are looking for signs of diplomatic resolution rather than immediate tariff implementation. The November 1 effective date for the proposed 100% China tariff remains in place unless Trump formally announces modifications to the tariff policy Trump calls Xi ‘highly respected President’ who ‘had a bad moment’, Truth Social post hints at reconciliation with China on tariffs^[2].