As U.S. President Donald Trump struck a somewhat softer tone toward the Chinese government, the three major stock indexes on Wall Street are rebounding.
As of 10:07 a.m. on the 13th (local time), the Dow Jones Industrial Average on the New York Stock Exchange is up 478.75 points (1.05%) from the previous session at 45,958.35.
The Standard & Poor's (S&P) 500 is up 97.05 points (1.48%) to 6,649.56 from the previous session, and the Nasdaq composite is surging 458.95 points (2.07%) to 22,663.38.
Earlier, there were signs of easing tensions between the United States and China. Scott Bessent Minister of the U.S. Treasury said in an interview with Fox Business that "President Trump plans to meet with Chinese President Xi Jinping in Korea as scheduled," adding, "I still believe it will proceed as planned."
Minister Bessent suggested signs of change in bilateral relations, saying, "Over the weekend there was substantive communication (between the United States and China), and this was different from the early period when China did not respond at all to our inquiries."
On the 12th, President Trump said on his social media Truth Social, "Don't worry about China," adding, "Xi does not want his country to experience a recession, and neither do I. This situation looks less serious than it appears."
On the 10th, President Trump pressed China by saying he would impose a 100% tariff starting Nov. 1 and would also fully control exports of critical software, a comparatively softer stance now.
U.S. Vice President J.D. Vance also hinted in TV interviews over the weekend that negotiations with China are possible, as the Trump administration continues moves to broadly calm tensions between the two countries.
The Chinese government also stepped back on the rare earth export control measures announced on the 9th, saying, "We are controlling, not banning."
With shifts in the international landscape, investors are reviving risk appetite. The Philadelphia Semiconductor Index, centered on artificial intelligence (AI) and semiconductors, which plunged more than 6% in a single day on the 10th, is rebounding more than 4%.
All mega-cap tech companies with a market capitalization above $1 trillion are strong. Nvidia is up 3.10%, leading gains in tech, and Oracle is also jumping 3.81%, nearing a $900 billion market cap.
Broadcom is up more than 9% on news of a major contract with OpenAI. Earlier, OpenAI announced it would build a 10-gigawatt (GW) data center with Broadcom. OpenAI designs the chips and Broadcom manufactures them.
Financials are broadly higher as well. JPMorgan Chase, Goldman Sachs, and Morgan Stanley are all up around 2%. Bank stocks face earnings releases this week, and expectations appear to be getting priced in.
European stocks are mixed. The Euro Stoxx 50 index is up 0.48% from the previous session at 5,558.03. Germany's DAX is up 0.22%. France's CAC 40 is down 0.07%. Britain's FTSE 100 slipped 0.04%.
International oil prices are jumping nearly 2% as Trump visits Israel. At the same time, West Texas Intermediate (WTI) for November delivery, the front-month contract, is up 1.75% from the previous session at $59.93.