Markets Rally as U.S.-China Trade Tensions Show Signs of Thaw

Investors pile into risk assets as vague promises of ’productive talks’ spark optimism—because nothing fuels a bull run like the hope that two economic superpowers might stop acting like petulant toddlers. Tech leads the charge, because when has it ever not?

Deal could take years

However, equities eased from session highs after Bessent also warned that trade talks had yet to formally begin and that a final deal could take years.

“If we walk out the door of negotiations and signed something in two or three years that looked like that, I would think that it’s a huge win,” he reportedly said.

The sharp reversal came after Monday’s sell-off, when the Dow fell nearly 1,000 points following President Trump’s renewed attacks on Fed Chair Jerome Powell. Investors remain wary of the uncertain direction of U.S. trade policy, especially as the administration also engages in discussions with India.

Tesla shares rose 5% ahead of its earnings report, although the EV Maker remains down roughly 40% year-to-date, amid slumping demand and political controversy surrounding CEO Elon Musk.

The global crypto market cap is at $2.85T, a 4.30% increase over the last day with Bitcoin (BTC) trading at $91,340, according to crypto.news data.