Dow Soars 600 Points as Trump Eases China Tensions — Get Live Updates on Today’s Stock Market!

Stocks surged after a tough Friday. Comments from President Trump and his team eased worries about a potential trade war with China.

On Sunday, Trump reassured folks on his Truth Social platform. “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment,” he wrote. He emphasized that the U.S. wants to help China, not hurt it.

In a recent interview, Vice President JD Vance pointed out the U.S. has a lot of influence over China. He noted that Trump is always open to reasonable talks. Treasury Secretary Scott Bessent also mentioned that discussions between the two countries are expected soon, suggesting that the proposed tariff increase might not happen after all.

Following these comments, various assets, from gold to oil, experienced increases. The dollar gained strength, and stocks rose by over 1%, with tech shares leading the way. Notably, U.S. Treasury markets were closed due to Columbus Day.

Last Friday, Trump had threatened a 100% tariff on China and planned new export controls after China imposed restrictions on rare-earth exports. That day marked the worst for the S&P 500 and Nasdaq since April.

This back-and-forth shows how sensitive markets are to diplomatic relations. According to a recent CNBC survey, nearly 80% of investors believe that trade tensions with China will directly impact their investments.

In the larger context, trade relations between the U.S. and China have evolved dramatically over the years. Back in 2001, when China joined the World Trade Organization, many believed it would lead to improved cooperation. Fast forward two decades, and the narrative has shifted to one of confrontation.

Public reactions on social media reflect a mix of optimism and skepticism. Some users express hope that a resolution will benefit the economy, while others are wary of the potential consequences of ongoing disputes.

For a deeper dive into trade impacts, check out the Council on Foreign Relations. It’s important to stay informed as these developments unfold.

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