Markets Rally as Trump Walks Back China Rhetoric—Traders Breathe (Before Next Tweet)

Dow, S&P 500, and Nasdaq all close higher after political whiplash—because nothing says ’stable market’ like geopolitical mood swings. Bonus: Wall Street shrugs, buys the dip, and pretends this time is different.

No unilateral offer to China yet

However, Treasury Secretary Scott Bessent tempered market expectations by clarifying that no unilateral offer had been made to deescalate the U.S.-China trade conflict. 

Still, Bessent described the possibility of a “big deal” if both sides engage in joint rebalancing efforts.

The easing rhetoric boosted shares of China-exposed tech firms. Apple and Nvidia rose 3% and 4%, respectively, while Tesla gained 5% after Elon Musk said he would reduce time spent on a government efficiency role.

Despite the rebound, economic concerns persist. BCA Research warned of underpriced recession risks, pointing to weakening labor markets and slowing business investment. 

Meanwhile, Piper Sandler predicted a short-term truce on tariffs, but not a full rollback.

Investor sentiment remains cautious, with some strategists urging discipline amid potential volatility and conflicting policy signals.

Bitcoin (BTC) gained around 2.5% on the day, currently trading at around $93,700.