Gains by chipmakers pushed Wall Street significantly higher before markets opened Monday as trade tensions between China and the U.S. appeared to soften over the weekend. Futures for the Dow Jones Industrial Average rose 0.9% before the bell, while futures for the S&P 500 jumped 1.2%. The technology-focused Nasdaq soared 1.7%. Monday’s early gains were […]
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Wall Street claws back some big losses as Trump softens tone on China
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Gains by chipmakers pushed Wall Street significantly higher before markets opened Monday as trade tensions between China and the U.S. appeared to soften over the weekend.
Futures for the Dow Jones Industrial Average rose 0.9% before the bell, while futures for the S&P 500 jumped 1.2%. The technology-focused Nasdaq soared 1.7%. Monday’s early gains were not enough to offset Friday’s wipeout, which saw the S&P 500 sink 2.7% and the Dow industrials fall 1.9%. The Nasdaq composite lost 3.6%.
On Monday, Beijing urged U.S. President Donald Trump to withdraw a threat he made Friday to crank tariffs on Chinese-made goods higher after China placed stricter restrictions on exports of rare earths, which are materials critical for manufacturing everything from consumer electronics to jet engines.
The potential for more friction between the world’s two biggest economies rattled markets, giving U.S. shares their worst day since April. But over the weekend, Trump adopted a more conciliatory stance, easing investors’ jitters.
While Trump did not withdraw his threat, he struck a more moderate tone, saying in a Truth Social post Sunday, “The U.S.A. wants to help China, not hurt it!!!”
“Markets woke up Monday to the smell of détente — that familiar scent of risk-on optimism that only comes after a weekend of mutual saber-rattling followed by a wink and a handshake from Washington,” Stephen Innes of SPI Asset Management said in a commentary.
“But let’s be clear: this isn’t détente, it’s negotiation theatre,” he said.
Chipmakers were some of the biggest gainers in early Monday trading, with Advanced Micro Devices gaining 3.4% and Micron jumping 4.9%. Broadcom and Nvidia each gained closed to 3%.
Barring a breakthrough in the U.S. government shutdown, the biggest news of the week will come Tuesday, when U.S. banks kick off earnings season by releasing their most recent quarterly financial results. United Airlines and Johnson & Johnson also report this week.
Asian shares initially tumbled but regained some of their early losses.
China reported its global exports rose 8.3% in September from a year earlier, the strongest growth in six months and further evidence that its manufacturers are shifting sales from the U.S. to other markets.
However, exports to the U.S. tumbled 27% year-on-year last month, customs data showed. That was a slight improvement from a 33% drop in August, but the sixth straight month of double-digit declines.
In Hong Kong, the Hang Seng sank 1.5% to 25,889.48, while the Shanghai Composite index edged 0.2% lower to 3,889.50.
South Korea’s Kospi gave up 0.7% to 3,584.55 and Australia’s S&P/ASX 200 declined 0.8% to 8,882.80.
Taiwan’s Taiex shed 1.4% and India’s Sensex was down 0.2%.
Markets in Tokyo were closed for a holiday.
Germany’s DAX and the CAC 40 in Paris each rose 0.4% while Britain’s FTSE 100 was unchanged.
In energy trading, U.S. benchmark crude gained $1.21, or 2%, to $60.08 per barrel. Brent crude, the European standard, advanced $1.12 to $63.85 per barrel.