U.S. Stocks Rebound on Hopes of U.S.-China Trade Relief
U.S. stocks soared on Tuesday, recovering from Monday’s sharp decline. investors where optimistic about easing trade tensions between the U.S. and China.
The Dow Jones Industrial Average jumped 1,009 points, or 2.7%. The S&P 500 and Nasdaq Composite also rose by 2.4% and 2.5%, respectively.
This rally was sparked by Treasury Secretary Scott Bessent’s remarks. He told investors that the ongoing U.S.-China trade conflict is “unsustainable” and hinted at a possible “de-escalation.” He made these comments during a JPMorgan event, as reported by Bloomberg.
Stocks linked to China, like the iShares China Large-Cap ETF, climbed about 3%. Though, the market cooled off when Bessent warned that trade talks haven’t officially started and a deal could take years.
Despite the positive turn, investors are still cautious. Monday’s sell-off was triggered by President Trump’s criticism of Fed Chair Jerome Powell. Uncertainty over U.S. trade policy, especially with india, also adds to the tension.
Tesla shares gained 5% ahead of its earnings report. Though, the company is still down 40% this year due to falling demand and CEO Elon Musk’s controversies.
The global crypto market cap is now at $2.85T, up 4.30% in a day. Bitcoin (BTC) is trading at $91,340, according to crypto.news data.
