Traders work at the New York Stock Exchange on Oct. 10, 2025.
NYSE
Stocks surged on Monday, rebounding from Friday’s sell-off after President Donald Trump said trade relations with China “will all be fine.”
The Dow Jones Industrial Average jumped 455 points, or 0.1%. The S&P 500 climbed 1.4%, on track to retrace around 40% of its Friday loss. The Nasdaq Composite popped 2% as beat-down technology stocks led the bounce.
AMD rose more than 3% along with Nvidia and Oracle. Broadcom jumped more than 7% after making its partnership with OpenAI official on Monday morning.
Those moves come after Trump’s Truth Social post on Sunday suggested to investors the president may not follow through on his threat to post a “massive increase of tariffs” on China. That comment on Friday brought the U.S. trade war with China back to the fore, and sent stocks tumbling in a rout that wiped out $2 trillion in market value.
S&P 500, 5-day
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I,” Trump wrote. “The U.S.A. wants to help China, not hurt it.”
Vice President JD Vance echoed those sentiments over the weekend. He told Fox News that the U.S. will negotiate if Beijing is “willing to be reasonable,” though he added that the U.S. has “far more cards” if not.
“The underlying tensions and uncertainty remain, and we still don’t think an all-encompassing deal is anywhere close, but this tamps down concerns about the risk of 100% tariffs or disruptive export controls while talks continue,” said Tobin Marcus, head of U.S. policy at Wolfe Research. “Trump seems to be telling investors they can safely buy the dip, and given their track record this year of doing so even when it seemed risky, we expect markets will accept this invitation.”
All three major averages ended last week in the red. The S&P 500’s drop on Friday alone was its largest since April, when the stock market was still reeling from the shock of Trump’s initial tariff announcement.
But the recent statements could encourage investors to return to the market after Friday’s sell-off, especially in technology names that got hit with the worst of the selling. Many tech companies rely on rare earths from China for the manufacture of semiconductors and electric vehicles, among other goods.
Around four out of every five S&P 500 components traded higher on Monday, signaling a broad-based recovery. Small-cap stocks also joined in, with the Russell 2000 jumping around 2% after finishing Friday down 3%.
Despite Monday morning’s bounce, the market is facing other concerns. The government shutdown is stretching into a new week as a major payrolls deadline looms on Oct. 15.
Earnings season kicks off this week. Citigroup, Goldman Sachs Group, Wells Fargo, JPMorgan Chase, Bank of America and Morgan Stanley are due out with their results Tuesday and Wednesday. Several regional banks are also set to post their quarterly results.
The bond market was closed Monday due to the Columbus Day holiday.