Thanks to a conciliatory gesture by U.S. President Donald Trump toward China, the three major New York stock indexes rebounded just one day after a sharp drop.
On the 13th (Eastern Time), the Dow Jones Industrial Average ended transaction at 46,067.58, up 587.98 points (1.29%) from the previous session. The Standard & Poor's (S&P) 500 rose 102.21 points (1.56%) to 6,654.72, and the tech-heavy Nasdaq composite closed at 22,694.61, up 490.18 points (2.21%), respectively.
The previous day on the social media (SNS) platform Truth Social, President Trump said, "Don't worry about China. Everything will be fine," and added, "He (President Xi Jinping) does not want his country to suffer a recession, and neither do I." It sent a message that he does not want a head-on clash with China.
Earlier, on the 10th, President Trump said he would impose an ultra-high 100% tariff in protest of China's rare earth export controls and that he might boycott a face-to-face meeting with Xi, set to take place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju at the end of this month. As signs pointed to escalating U.S.-China tensions, the New York stock market plunged.
The day's gains were led by semiconductor stocks related to artificial intelligence (AI). Broadcom surged 9.88% after announcing it had reached an agreement with OpenAI, the developer of ChatGPT, on developing its own AI chips, and Nvidia rose 2.82%. Other tech stocks such as Tesla (5.42%) and Oracle (5.14%) also rebounded on the day.