The US stock market experienced a strong rebound as major indices rose for the second consecutive day, driven by optimism over easing trade tensions. The Dow Jones Industrial Average increased by 419.59 points, or 1.07%, closing at 39,606.57. The S&P 500 gained 1.67%, ending at 5,375.86, while the Nasdaq Composite surged 2.50% to close at 16,708.05. Despite these gains, the indices did not maintain their intraday highs, with the Dow rising over 1,100 points and the S&P up by 3.44% at one point.
Among individual stocks, Tesla (TSLA) rose 5.3% after CEO Elon Musk announced plans to reduce his work time with the US government to focus more on the company, despite a 71% drop in quarterly net profit. Leading tech stocks also saw gains, with Amazon up 4.2%, Meta Platforms 4.0%, NVIDIA 3.6%, Google 2.5%, Apple 2.2%, and Microsoft 1.9%.
Chinese assets also performed well, with the Wande China Concept Stock Technology Index rising 2.4% and the Nasdaq Golden Dragon China Index up 2.9%. Alibaba increased by 2.7%, Pinduoduo 2.2%, NetEase 1.6%, while JD.com fell 0.3%.
Investors were buoyed by positive signals on trade policies, with the US Treasury Secretary expressing optimism about reaching a "significant trade agreement," seen as a key turning point in reducing tensions. BMO Capital Markets noted that investors might be overly pessimistic about US stocks, suggesting a potential strong price rebound. Analysts emphasize that investors are highly responsive to any signs of easing tensions, as ongoing policy conflicts have strained global supply chains and corporate profits.
