Gains by chipmakers pushed Wall Street significantly higher Monday as trade tensions between China and the U.S. appeared to soften over the weekend.<\/p>\n
All major stock indexes had added back a significant portion of what they lost Friday, with the S&P 500 ending the day up 1.6%. The Dow Jones Industrial Average added 1.3%, and the tech-heavy Nasdaq rose 2.2%. <\/p>\n
On Monday, Beijing urged U.S<\/a>. President Donald Trump<\/a> to withdraw a threat he made Friday to crank tariffs<\/a> on Chinese-made goods higher after China placed stricter restrictions on exports of rare earths,<\/a> which are materials critical for manufacturing everything from consumer electronics to jet engines.<\/p>\n The potential for more friction between the world\u2019s two biggest economies rattled markets, giving U.S. shares their worst day since April. But over the weekend, Trump adopted a more conciliatory<\/a> stance, easing investors\u2019 jitters.<\/p>\n While Trump did not withdraw his threat, he struck a more moderate tone, saying in a Truth Social post Sunday, \u201cThe U.S.A. wants to help China, not hurt it!!!\u201d<\/p>\n \u201cMarkets woke up Monday to the smell of d\u00e9tente \u2014 that familiar scent of risk-on optimism that only comes after a weekend of mutual saber-rattling followed by a wink and a handshake from Washington,\u201d Stephen Innes of SPI Asset Management said in a commentary.<\/p>\n \u201cBut let\u2019s be clear: this isn\u2019t d\u00e9tente, it\u2019s negotiation theatre,\u201d he said.<\/p>\n Chipmakers were some of the biggest gainers in Monday trading, with Micron jumping 6.2%. Broadcom rose 9.9%, and Nvidia gained 2.8%.<\/p>\n Barring a breakthrough in the U.S. government shutdown, the biggest news of the week will come Tuesday, when U.S. banks kick off earnings season by releasing their most recent quarterly financial results. United Airlines and Johnson & Johnson also report this week.<\/p>\n Asian shares initially tumbled but regained some of their early losses.<\/p>\n