US President Donald Trump, in a post on Truth Social, said he had a “great call” with South Korea’s acting president and claimed that China was “eager” to strike a trade deal.
The CBOE Volatility Index, Wall Street’s fear gauge, had spiked to a dramatic 60 on Monday—a level often seen as a setup for a technical bounce.
US’ main indices continued to trade with strong gains and delivered a powerful comeback on Tuesday, breaking a three-day losing streak, as fresh hopes of progress on trade negotiations lifted sentiment rattled by steep tariffs and market turmoil.
The Dow Jones Industrial Average rebounded 720 points, or 2 percent, after plunging more than 1,700 points during Monday’s wild session. The S&P 500 and Nasdaq Composite each climbed 1.5 percent. Though the day’s rally cooled from its earlier highs, the strong gains offered a brief respite after one of the most volatile stretches in recent memory.
At its peak during the session, the Dow was up as much as 3.8 percent, while the S&P 500 and Nasdaq had soared more than 4 percent, as investors latched onto signals that the U.S. might be open to revisiting its aggressive tariff stance.
In a post on Truth Social, President Donald Trump said he had a “great call” with South Korea’s acting president and added that China “also wants to make a deal badly.” The post came alongside a flurry of statements from U.S. officials suggesting that several countries were actively pursuing negotiations.
CNBC reported that Treasury Secretary Scott Bessent said around 70 countries had reached out to the U.S. to initiate tariff talks. “If they come to the table with solid proposals, I think we can end up with some good deals,” he said, though he added that certain tariffs could remain as part of the final arrangements.
Tuesday’s rally followed a bruising Monday that saw record trading volumes—roughly 29 billion shares changed hands, marking the busiest day in at least 18 years. The Dow swung 2,595 points between its high and low before ending the session down 349 points, or 0.9 percent. The S&P 500 briefly dipped into bear market territory, having lost more than 20 percent from its peak, and shed 10 percent in the final two days of last week—its worst drop since the onset of the Covid pandemic in 2020.
Big tech stocks, which had taken a beating due to their exposure to international markets, led Tuesday’s charge. Apple jumped 4 percent, while Nvidia and Meta gained roughly 5 percent each. Tesla soared more than 6 percent, and Amazon and Netflix climbed over 4 percent.
The CBOE Volatility Index, Wall Street’s fear gauge, had spiked to a dramatic 60 on Monday—a level often seen as a setup for a technical bounce. It eased to around 40 on Tuesday, reflecting the day’s more optimistic mood.
Source: www.moneycontrol.com