
Market Rollercoaster: Trump's Words Drive Stocks Up and Down in US-China Trade Drama
Trump's words dance on trade's thin line
Wall Street holds its breath
US stocks experienced a dramatic rebound on Monday, recovering from Friday's significant losses after President Trump moderated his rhetoric on US-China trade tensions [1][2].
The market's volatility was driven by Trump's shifting statements, with Friday's threats of imposing 100% tariffs on Chinese goods triggering a massive sell-off that erased approximately $2 trillion in stock value. However, Monday saw a sharp reversal, with major indices staging a substantial comeback [1].
The Dow Jones Industrial Average jumped 1.4%, while the S&P 500 and Nasdaq Composite gained nearly 1.8% and 2.3% respectively. Trump's conciliatory tone on Sunday, stating "Don't worry about China, it will all be fine!" helped calm investor nerves [1].
Adding to the market's positive momentum was an AI-related development: OpenAI's multiyear deal with Broadcom, which drove chipmaker stocks higher and contributed to the tech sector's rally. Broadcom's stock surged 10% on this news [2][3].
Both US and Chinese administrations signaled a willingness to continue trade negotiations, with China's Ministry of Commerce urging further dialogue to resolve outstanding trade issues [2].