US close: Stocks partially rebound as Trump de-escalates China trade tensions

(Sharecast News) - Reassuring words from Donald Trump following his recent trade spat with China prompted big gains on US markets on Monday, though stocks only partially rebounded after the huge sell-off on Friday.

Trump signalled he may not proceed with a "massive increase of tariffs" on China - a threat that had reignited trade war fears and triggered a $2trn market rout last week.

"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 said. "The USA wants to help China, not hurt it."

Vice president JD Vance echoed the shift in tone, stating that the US was open to talks if Beijing was "willing to be reasonable", though he claimed Washington held "far more cards" if not. The remarks helped steady sentiment after Friday's sharp sell-off.

The Dow gained 1.3%, following a 1.9% drop on Friday; the S&P 500 rose 1.6% after slumping 2.7%; while the Nasdaq jumped 2.2% after tanking 3.6%.

"Both the US and China spent the weekend walking back from the brink of another trade war, with US policymakers doing most of the talking and helping to undo the damage done on Friday," said Chris Beauchamp, chief market analyst at IG. "Not all the losses have been recovered as yet, since sentiment will take a little time to recover after Friday's shock, but at present it looks like Trade War 2.0 is off the cards for now."

Nevertheless, broader concerns lingered as the Federal government shutdown entered a new week, with a key payroll deadline looming on 15 October and many federal workers facing the prospect of missing their next paycheque.

Market movers

Broadcom shares jumped 10% after the chipmaker formalised its partnership with OpenAI, with the two firms set to jointly build and deploy 10 gigawatts of custom AI accelerators.

Banking stocks finished higher ahead of the latest quarterly results from heavyweights JP Morgan, Citigroup and Wells Fargo due out on Tuesday. Bank of America and Morgan Stanley are also due to report later in the week.

JPMorgan was also in demand after unveiling a 10-year strategy to finance and invest in companies considered vital to US national security.

Broker commentary was also lifting a number of stocks: Shake Shack was upgraded by Jefferies from 'underperform' to 'hold'; Rocket Lab's target price was raised by Morgan Stanley; while Goldman Sachs gave Estee Lauder a boost from 'neutral' to 'buy'.

Warner Bros Discovery was making gains after rejecting a takeover approach from Paramount Skydance.

Dow Jones - Risers

Goldman Sachs Group Inc. (GS) $788.58 3.17%

JP Morgan Chase & Co. (JPM) $308.14 2.41%

Intel Corp. (INTC) $37.22 2.34%

Boeing Co. (BA) $215.57 2.30%

Unitedhealth Group Inc. (UNH) $358.66 1.17%

McDonald's Corp. (MCD) $300.11 1.04%

Apple Inc. (AAPL) $247.66 0.97%

Microsoft Corp. (MSFT) $514.05 0.60%

Walmart Inc. (WMT) $102.12 0.27%

Johnson & Johnson (JNJ) $190.89 0.09%

Dow Jones - Fallers

Procter & Gamble Co. (PG) $147.54 -1.44%

Coca-Cola Co. (KO) $66.78 -0.40%

International Business Machines Corporation (CDI) (IBM) $277.20 -0.22%

Visa Inc. (V) $343.33 -0.09%

S&P 500 - Risers

Kohls Corp. (KSS) $15.49 10.84%

Broadcom Inc. (AVGO) $356.70 9.88%

Advance Auto Parts (AAP) $54.04 9.22%

Albemarle Corp. (ALB) $96.34 7.21%

Microchip Technology Inc. (MCHP) $64.39 6.59%

Skyworks Solutions Inc. (SWKS) $73.37 6.09%

Dollar Tree Inc (DLTR) $92.59 5.68%

Nektar Therapeutics (NKTR) $57.31 5.47%

Oracle Corp. (ORCL) $308.10 5.17%

Newmont Corporation (NEM) $89.32 4.91%

S&P 500 - Fallers

Fastenal Co. (FAST) $42.33 -7.54%

Wynn Resorts Ltd. (WYNN) $112.47 -6.19%

Arista Networks Inc. (ANET) $147.41 -4.34%

Hologic Inc. (HOLX) $65.51 -3.32%

Altria Group Inc. (MO) $64.91 -2.45%

General Mills Inc. (GIS) $48.22 -2.28%

ConAgra Brands Inc (CAG) $18.17 -2.18%

Aon plc (AON) $353.34 -1.89%

Eli Lilly and Company (LLY) $818.67 -1.78%

Procter & Gamble Co. (PG) $147.54 -1.44%

Nasdaq 100 - Risers

Broadcom Inc. (AVGO) $356.70 9.88%

Microchip Technology Inc. (MCHP) $64.39 6.59%

Skyworks Solutions Inc. (SWKS) $73.37 6.09%

Dollar Tree Inc (DLTR) $92.59 5.68%

Asml Holdings N.V. (ASML) $984.66 5.18%

Lam Research Corp. (LRCX) $137.81 4.90%

Applied Materials Inc. (AMAT) $219.48 4.54%

Analog Devices Inc. (ADI) $234.67 4.15%

Liberty Global plc Series C (LBTYK) $11.01 3.77%

Liberty Global plc Series A (LBTYA) $10.94 3.65%

Nasdaq 100 - Fallers

Fastenal Co. (FAST) $42.33 -7.54%

Wynn Resorts Ltd. (WYNN) $112.47 -6.19%

Hologic Inc. (HOLX) $65.51 -3.32%

Regeneron Pharmaceuticals Inc. (REGN) $557.73 -1.22%

Vodafone Group Plc ADS (VOD) $11.16 -1.19%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $542.93 -1.16%

Check Point Software Technologies Ltd. (CHKP) $194.69 -0.44%

Verisk Analytics Inc. (VRSK) $242.08 -0.40%

Charter Communications Inc. (CHTR) $258.66 -0.32%

Automatic Data Processing Inc. (ADP) $284.35 -0.29%