U.S. stocks tumble on tariff threat
U.S. stocks initially plunged after President Trump threatened more tariffs on China but rebounded Monday after he softened his tone, posting "all will be fine" and saying Xi wouldn’t want a depression. The S&P 500 rose 1.5% (96 points) to 6,637, the Dow gained 1.2% (561 points) and the Nasdaq climbed 1.9%, led by chipmakers such as AMD (+3.4%), Micron (+4.9%) and Broadcom and Nvidia (around +3%); analysts warned trade flare‑ups can still spark volatility as earnings season for major banks begins and key inflation data has been delayed by the shutdown.
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📌 Key Facts
- U.S. stocks rebounded Monday: S&P 500 +1.5% (96 points) to 6,637; Dow Jones Industrial Average +1.2% (561 points); Nasdaq +1.9%.
- The rally followed President Trump softening his tone on China tariffs, posting that "all will be fine" and referencing Xi Jinping not wanting a depression.
- Chipmakers led the gains: AMD +3.4%, Micron +4.9%, and Broadcom and Nvidia each up around 3%.
- Analysts (including SPI Asset Management and E*TRADE via Morgan Stanley) cautioned that renewed flare-ups in trade tensions could still spark market volatility.
- Earnings season begins this week with major banks reporting, providing fresh market catalysts.
- Key inflation data was delayed until next week because of the government shutdown, removing near-term macroeconomic clarity.
📰 Sources (2)
Stocks rebound after Trump softens tone on China tariffs
New information:
- Markets rebounded Monday: S&P 500 +1.5% (96 points) to 6,637; Dow +1.2% (561 points); Nasdaq +1.9%.
- Trump softened tone Sunday, posting "all will be fine" with China and referencing Xi not wanting a depression.
- Chipmakers led gains: AMD +3.4%, Micron +4.9%, Broadcom and Nvidia each up around 3%.
- Analysts (SPI Asset Management, E*TRADE from Morgan Stanley) cautioned that flare-ups in trade tensions can still spark volatility.
- Earnings season begins this week with major banks; key inflation data is delayed until next week due to the shutdown.