United States benchmark averages rebounded on Tuesday (Wednesday AEST), fuelled by renewed optimism that trade tensions between the United States and China could ease in the near future.
The Dow Jones Industrial Average climbed 1,016.6 points, or 2.7%, to close at 39,187.0, the S&P 500 rose 2.5% to finish at 5,287.8, while the tech-heavy Nasdaq Composite advanced 2.7% to 16,300.4.
The gains came after a volatile period for equities, with all three major indices attempting to recover from a steep sell-off on Monday.
Investor sentiment was buoyed by remarks from Treasury Secretary Scott Bessent, who suggested that the ongoing trade war with China may soon see signs of de-escalation.
Speaking to investors at a meeting hosted by JPMorgan Chase, Bessent stated that “no one thinks the current status quo is sustainable”. His comments, first reported by Bloomberg, sparked a strong rally in equity markets.
However, Bessent tempered expectations, adding that even a deal signed years from now resembling current discussions would be “a huge win”.
On the bond markets, 10-year rates fell 0.4% to 4.401% and 2-year yields were 1.4% higher at 3.821%.
