Stock markets in New York closed with significant gains on Tuesday, following losses from the previous day, as investors responded to a Bloomberg news agency report citing US Treasury Secretary Scott Bessent as describing the stalemate between China and the USA as unsustainable.
The Dow Jones Industrial Average rose 2.7% to finish the trading day at 39,186.98 points. The broader S&P 500 increased by 2.5% to 5,287.76 points, while the technology-focused Nasdaq climbed 2.7% to 16,300.42 points.
Bessent stated in a private meeting that the two largest economies had to find ways to reduce the trade war tensions, Bloomberg reported on Tuesday. He expressed optimism that the tensions could ease in the coming months, potentially bringing relief to financial markets, although a comprehensive trade agreement between China and the US might still take some time.
On Monday, investor sentiment had been heavily depressed by new comments from US President Donald Trump targeting Federal Reserve Chairman Jerome Powell.
Trump’s ongoing criticisms had raised concern about the central bank’s independence, leading to a drop of up to 2.6% in the three major indices.
