US stocks bounced back Monday on signs that Washington’s trade tensions with China were easing, coupled with deescalation in the Middle East.
Following Wall Street’s worst selloff since April on Friday, top US officials signaled openness to a trade deal with Beijing to resolve a fresh spat over rare earth exports. Optimism over a permanent peace in Gaza following a landmark ceasefire deal also buoyed global markets as traders reassessed the geopolitical risk premium that has dominated sentiment.
Wall Street is confident heading into earnings season, as the big banks begin reporting Tuesday: A rebound in dealmaking has boosted bank stocks, but thorny issues like AI spending and tariffs will loom over the corporate reports, Bloomberg wrote.
