Nasdaq Climb 2%, Dow Soars 600 Points As Trump Steps Back From Tariff Threats

Oct 13 - U.S. stocks rallied on Monday, reversing sharp losses from the prior session, after President Donald Trump signaled a more conciliatory stance toward China, easing investor concerns over escalating trade tensions.

The Dow Jones Industrial Average gained about 600 points, or 1.3%, while the S&P 500 climbed 1.6%. The Nasdaq Composite jumped 2.1% as technology names led the recovery. Broadcom AVGO soared more than 9% after finalizing its artificial intelligence partnership with OpenAI. Advanced Micro Devices AMD and Nvidia NVDA added roughly 1% and 2%, respectively, while Oracle ORCL advanced more than 4%.

The rebound came after Trump wrote on Truth Social that trade relations with China will all be fine, signaling a possible retreat from earlier tariff threats that had sparked a $2 trillion market sell-off last Friday. Vice President JD Vance also noted over the weekend that Washington remains open to talks if Beijing is willing to be reasonable.

Nearly 80% of S&P 500 components traded higher, reflecting broad-based optimism. Small-cap shares joined the uptrend, with the Russell 2000 rising more than 2%. Still, investors remain watchful as the U.S. government shutdown continues and major banks prepare to kick off earnings season later this week.