Traders work on the floor of the New York Stock Exchange (NYSE) during the opening bell in New York on October 13, 2025.
Timothy A. Clary | Afp | Getty Images
Stocks jumped Monday, rebounding from Friday’s selloff after President Donald Trump said trade relations with China would “go well.”
THE Dow Jones Industrial Average jumped 491 points, or 1.1%. THE S&P500 rose 1.5%, on track to retrace about 40% of its loss from Friday. THE Nasdaq Composite jumped 2% as struggling technology stocks led the rebound.
AMD increased by more than 3% with Nvidia And Oracle. Broadcom jumped more than 7% after formalizing its partnership with OpenAI on Monday morning.
The moves come after Trump’s Truth Social message suggested to investors on Sunday that the president might not follow through on his threat to issue a “massive tariff increase” on China. Friday’s comment brought the U.S.-China trade war back into the spotlight and sent stocks tumbling in a rout that wiped out $2 trillion in market value.
S&P 500, 5 days
“Don’t worry about China, everything will be fine! The highly respected President Xi just had a bad time. He doesn’t want a depression for his country, and neither do I,” Trump wrote. “The United States wants to help China, not harm it.”
Vice President JD Vance echoed those sentiments over the weekend. He told Fox News that the United States would negotiate if Beijing was “willing to be reasonable,” while adding that the United States had “a lot more cards” otherwise.
“Underlying tensions and uncertainty remain, and we still don’t think a comprehensive deal is close, but it eases concerns about the risk of 100% tariffs or disruptive export controls while negotiations continue,” said Tobin Marcus, head of U.S. policy at Wolfe Research. “Trump appears to be telling investors that they can safely buy on the dip, and given their history of doing so this year, even when it seemed risky, we expect markets to accept that invitation.”
Broad market recovery
All three major averages finished last week in the red. The S&P 500’s fall on Friday alone was the biggest since April, when the stock market was still reeling from Trump’s initial tariff announcement.
But the recent statements could encourage investors to return to the market after Friday’s selloff, particularly in technology stocks that were hit hardest by the selloff. Many technology companies rely on rare earths from China, among other things, to make semiconductors and electric vehicles.
About four out of five components of the S&P 500 traded higher on Monday, signaling a broad-based rally. Small-cap stocks have also joined the group, with the Russell 2000 jumping about 2% after finishing Friday down 3%.
Despite Monday morning’s rebound, the market faces other concerns. The government shutdown extends for another week as a major payroll deadline looms on October 15.
Results season starts this week. Citigroup, Goldman Sachs Group, Wells Fargo, JPMorgan Chase, Bank of America and Morgan Stanley are scheduled to report results Tuesday and Wednesday. Several regional banks are also expected to release their quarterly results.
The bond market was closed Monday due to the Columbus Day holiday.
