Dow, S&P 500, Nasdaq stage comeback as Trump tempers tariff talk toward China

US stocks surged on Monday, bouncing back from Friday's rout after President Trump played down the escalating US trade standoff with China, saying it "will all be fine!"

The Dow Jones Industrial Average jumped 1.4%, or over 600 points. The S&P 500 and the Nasdaq Composite gained nearly 1.8% and 2.3%, respectively, coming off their worst day since April.

Stocks are set to recoup some of Friday's hefty losses after Trump dialed back his Friday threat to impose an additional 100% tariff on Chinese goods from Nov. 1. That move reignited fears of a full-on US-China trade war and triggered a Wall Street sell-off that erased roughly $2 trillion in US stocks' value.

“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment,” Trump wrote on Truth Social on Sunday. “He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it.”

While Trump's comments aimed to calm jitters, they also kept up the pressure on Beijing to unwind its recent tightening of trade curbs by stressing the potential for economic damage. Meanwhile, China's export growth topped forecasts in September, as it strengthened trade with countries other than the US.

Beyond trade headlines, AI demand optimism was boosted by OpenAI's partnership with Broadcom, the latest in a string of AI deals. Broadcom shares jumped over 10%.