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US Equity Indexes Rebound After Bessent Calms China Trade Tensions

4:53 PM ET 10/13/2025 - MT Newswires

The Nasdaq Composite jumped 2.2% to 22,694.61, with the S&P 500 up 1.6% to 6,654.72 and the Dow Jones Industrial Average 1.3% higher at 46,067.58, following the sharp sell-off on Friday off the back of Trump's threat to impose 100% tariffs on China from Nov. 1. All sectors except consumer staples and healthcare rose, with technology and consumer discretionary leading the gainers.

Bessent said Monday that he expects the US president and Chinese counterpart, Xi Jinping, to still meet this month, after Trump threatened to call off their meeting in retaliation against new Chinese export controls, USA Today reported. He said the administration and China had "substantial communication" over the weekend.

"He [Trump] will be meeting with Party Chair Xi in Korea. I believe that meeting will still be on," Bessent was cited as saying in an interview on Fox Business. "The idea is to give them time to meet and work this out."

"Don't worry about China, it will all be fine," Trump said in a Truth Social post Sunday. "The U.S.A. wants to help China, not hurt it!!!"

In company news, Broadcom (AVGO) and OpenAI, which counts Microsoft (MSFT) as a major investor, announced on Monday that they are launching a partnership to deploy 10 gigawatts of OpenAI-designed artificial intelligence accelerators. Shares of the chipmaker surged 9.9% intraday, among the top gainers on the S&P 500 and the Nasdaq.

All Magnificent-7 stocks were up, with Tesla (TSLA) leading this pack of mega-caps with a significant combined weight in each of the three benchmark indexes.

JPMorgan Chase & Co. (JPM), Wells Fargo (WFC), Goldman Sachs (GS), BlackRock (BLK), and Citigroup (C) are among the companies reporting Q3 earnings on Tuesday. Apart from earnings, investors will also focus on a speech by Federal Reserve Chair Jerome Powell on Tuesday, alongside several other top central bank officials on the speaking circuit this week.

In federal shutdown news, the Senate has failed seven times to pass funding bills that would end the political impasse, which entered its 13th day on Monday. The next vote to resolve the crisis is scheduled for Tuesday, implying a further delay in the release of macroeconomic data.

Meanwhile, gold futures surged 3.1% to $4,125.92, touching yet another all-time high of $4,134.60 earlier in the session, and silver futures catapulted 6.8% to $50.44, implying the mood in precious metals markets was still risk-off. The US dollar also strengthened, gaining 0.8% against the Japanese yen to 152.34, implying risk aversion among currency investors.

West Texas Intermediate crude oil futures jumped 1.2% to $59.63 a barrel.