US stocks close with gains on possible easing trade tensions
Dow Jones adds 1.29%, Nasdaq gains 2.21%, S&P up 1.56%, while 'fear index' drops 12.14%
ISTANBUL
The New York Stock Exchange ended Monday on a high note, led by optimism that trade tensions between the US and China may ease after US President Donald Trump said relations with Beijing "will all be fine."
The Dow added 1.29%, or 587.98 points, to close at 46,067.58.
The Nasdaq soared 2.21%, or 490.18 points, to close at 22,694.61, while the S&P 500 rose 1.56%, or 102.21 points, to 6,654.72.
The Volatility Index (VIX), also known as the "fear index," fell 12.14% to 19.03.
The markets' positivity is in response to Trump's Sunday social media post, which hinted to investors that the president would not carry out his pledge to impose a "massive increase of tariffs" on China. Trump on Friday had threatened 100% tariffs on China over curbs on export of rare earths, causing a plummet in the stock markets and wiping out $2 trillion in market value.
“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 on US social media company Truth Social. “The USA wants to help China, not hurt it.”
Vice President JD Vance also gave similar remarks over the weekend. He told Fox News that the US will negotiate if Beijing is “willing to be reasonable,” though adding that the US has “far more cards” if not.
On the corporate side, chip firm Broadcom's shares climbed around 10% after the firm announced a partnership with OpenAI to provide the AI firm with its own custom-made chips.
JPMorgan Chase's shares rose 2.4% after the bank announced that it will invest up to $10 billion to meet the needs of sectors important to the country's interests and national security.
Oracle also surged more than 5.1%, while AMD and Nvidia rose around 0.8% and 2.9%, respectively.
While the statements of the Fed officials were also being monitored, Philadelphia Fed President Anna Paulson said monetary policy should focus on balancing the risks between maximum employment and price stability, which means shifting the policy to a more neutral stance.
Markets will be watching on Tuesday for statements by Fed Chair Jerome Powell and financial results to be released by major US banks Citigroup, Goldman Sachs, Wells Fargo and JPMorganChase.
