US: Trump signals negotiation of tariffs as stocks surge

US stocks climbed sharply on Tuesday, lifted by a wave of investor optimism after the Trump administration signaled plans to negotiate with countries affected by newly announced tariffs.

The Dow Jones Industrial Average soared 1,385 points, or 3.6%. The tech-heavy Nasdaq rose 3.7%, while the S&P 500 gained 3.3%.

Just minutes before the markets opened, President Donald Trump posted on Truth Social about a “great call” with South Korea’s acting president, Han Duck-soo, regarding trade talks.

He wrote, “We have the confines and probability of a great DEAL for both countries.

“We are likewise dealing with many other countries, all of whom want to make a deal with the United States.”

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Despite the upbeat tone, tensions between the US and China remained high.

Chinese Foreign Ministry spokesperson Lin Jian told reporters that Trump’s latest tariff declaration “does not reflect the willingness to have a serious dialogue.”

On Monday, Trump threatened to impose an additional 50% tariff on China unless Beijing reverses its recently announced 34% retaliatory tariffs.

China’s move had been a direct response to a 34% US tariff unveiled days earlier, which added to the 20% tariffs already imposed on Chinese goods.

The rally in US stocks mirrored gains in global markets, which had also taken a hit on Monday due to concerns over Trump’s escalating tariff push.

Japan’s Nikkei index rebounded 6% after suffering an almost 8% drop the previous day.

South Korea’s KOSPI index edged up 0.3%, while Australia’s S&P/ASX 200 rose 2.2%. India’s NIFTY 50 index climbed nearly 2%.

Hong Kong’s Hang Seng index, which had suffered its worst drop since 1997 on Monday with a 13% plunge, rose 1% on Tuesday. Shanghai’s Composite Index also gained 1.4%.

In Europe, markets turned positive after a volatile start to the week. Britain’s FTSE 100 rose 1.3% shortly after opening. Germany’s DAX gained 0.9%, and France’s CAC 40 added 1.3%.

Monday’s trading session had been particularly turbulent. The Dow saw its largest intraday point swing ever, falling over 1,700 points before reversing direction and climbing 2,595 points from the session low.

By the end of Monday, the Dow had dropped 349 points, or 0.91%. The Nasdaq managed a slight increase of 0.1%, and the S&P 500 closed down 0.23%.

The S&P 500 briefly entered bear market territory during the session but closed nearly 18% off its recent high. Its 8.5% high/low spread during Monday’s trading has only been recorded 20 times since 1962, according to S&P Global.

(ABC News)

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