Wall Street’s main indexes closed sharply higher on Monday, led by gains from Broadcom and other chipmakers, after President Donald Trump struck a conciliatory tone toward China, easing concerns about trade tensions between Washington and Beijing.
US Treasury Secretary Scott Bessent said on Monday that Trump was going to meet with his Chinese counterpart in South Korea, as the two sides eased tensions over the trade dispute.
Artificial intelligence (AI)-related technology stocks were the biggest gainers in Monday’s rebound, with Broadcom surging after announcing a partnership with OpenAI to produce the startup’s first AI processors.
“AI continues to be the driver of momentum, and it’s not surprising that investors bought the dip,” said Sam Stovall, chief investment strategist at CFRA Research, adding that investors should remain cautious as long as Trump’s dispute with China remains unresolved.
The S&P 500 and Nasdaq had suffered their biggest weekly declines in months following Trump’s comments.
Difficulties resurfaced last week after China expanded its export controls on rare earths. In response, Trump said Friday he would impose an additional 100% tariff on China’s exports to the United States, along with new export controls on critical software.
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However, in a more conciliatory tone over the weekend, Trump posted that “everything will be fine” and that the United States did not want to “hurt” China.
Beijing blamed Washington for the escalation on Sunday, but did not deploy further countermeasures.
According to preliminary data, the S&P 500 gained 101.38 points, or 1.55%, to 6,654.67 points, while the Nasdaq Composite gained 490.18 points, or 2.20%, to 22,692.57. The Dow Jones Industrial Average rose 591.13 points, or 1.29%, to 46,070.73.
In the Middle East, Hamas freed the last living Israeli hostages from Gaza and Israel sent Palestinian detainees home as part of a ceasefire deal pushed by Trump.
With information from Reuters.
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