Market Rebounds as U.S.-China Tensions Ease
Global equities recovered some losses as President Trump's softer stance on U.S.-China trade eased investor nerves. Gold continued to rise, reflecting ongoing uncertainty. Meanwhile, U.S. markets made gains, AI developments boosted the tech sector, and oil prices rose with an eye on upcoming earnings reports from major banks.
MSCI's global equities index rebounded on Monday, regaining ground lost in Friday's downturn following U.S. President Donald Trump's softened rhetoric on the U.S.-China trade war. Despite this, gold surged to new record highs, underscoring persistent investor uncertainty. U.S. Treasury Secretary Scott Bessent's announcement of planned talks between Trump and China's Xi Jinping further calmed markets.
Previously, Trump had threatened significant tariffs on China, but by Sunday expressed a more conciliatory tone. "Investors initially feared escalated tensions, but current sentiment has improved," said Chris Zaccarelli, a chief investment officer in North Carolina. Excitement in the tech sector also grew with OpenAI's collaboration with Broadcom on AI processors.
U.S. equity indices saw substantial gains; the Dow Jones rose 1.28%, the S&P 500 increased 1.54%, and the Nasdaq Composite climbed 2.14%. While gold remained a popular 'fear trade,' underscoring lingering market skepticism. Meanwhile, oil prices rallied, and major banks' earnings reports are awaited keenly in the coming week.
(With inputs from agencies.)
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