Dow jumps 413 points in 5 minutes as Trump reassures markets that everything will be fine

The S&P 500 jumped 1.1%, recovering just under half of its decline from Friday, which was the worst since April. the Dao The Jones Industrial Average rose 413 points, or 0.9%, by 9:35 a.m. ET. Nasdaq The composite was 1.3% higher.

“Don’t worry about China,” Trump said on his social media platform on Sunday. He also said that Chinese leader Xi Jinping “doesn’t want a depression for his country, and neither do I. The United States wants to help China, not hurt it!!!”

It was a sharp shift from the anger Trump showed on Friday, when he accused China of “… Moral disgrace in dealing with other nations.” He referred to a “very hostile letter” describing the restrictions imposed on this Rare earth exportsThey are materials used in the manufacture of everything from personal electronic devices to jet engines. Trump said at the time that he might impose an additional 100% tax on imports from China starting November 1.

Trump’s angrily retreat raised hopes that the world’s two largest economies would find a working relationship that would allow global trade to continue.

The big market moves of the past two days are resonating Manic swings in Aprilwhen Trump shocked investors by declaring a “Liberation Day” of global tariffs, only to Eventually he relents on a lot To give time to negotiate trade deals with other countries.

If this time ends similarly, with trade tensions and uncertainty easing, and perhaps even after a sharp decline in stock prices, conditions could allow a sustained recovery to continue into 2026, according to Reuters. Morgan Stanley The strategists are led by Michael Wilson.

Granted, the US stock market may have been set for a decline and was just looking for a potential catalyst.

It was already facing criticism that prices had risen too high after the S&P 500 index rose inexorably 35% from its April low. The index, which determines the movements of many 401(k) accounts, remains near its benchmark Highest level ever Set last week.

Not only did Trump’s rollback of tariffs in April help stimulate stock prices, but so did expectations of several interest rate cuts by the Federal Reserve to help the economy.

Critics say The market seems very expensive Now that prices are rising much faster than corporate profits. Fears are It is particularly high around companies in the artificial intelligence industryPessimists see echoes of the dot-com bubble that burst in 2000. For stocks to appear less expensive, either their prices must fall, or corporate profits must rise.

This raises the stakes in the upcoming earnings reporting season for US companies, which are set to determine how much they earned over the summer. JPMorgan ChaseJohnson & Johnson and United Airlines are among the big names on this week’s calendar.

fixed It fell 4.5% in one of the biggest losses in the S&P 500 after reporting fourth-quarter earnings that were slightly weaker than analysts expected.

In overseas stock markets, indicators were mixed in Europe after sharp losses in Asia.

Shares fell 1.5% in Hong Kong and 0.2% in Shanghai. You mentioned China Its global exports rose 8.3% in September from a year earlier, the strongest growth in six months and further evidence that its manufacturers are shifting sales from the United States to other markets.

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AP Business Writers Matt Ott and Ellen Kurtenbach contributed.