U.S. stocks surged Tuesday, shrugging off fresh geopolitical tension after China said it is not engaged in formal trade talks with the United States, even as former President Donald Trump’s tariff rhetoric returned to the spotlight.
The tech-heavy Nasdaq Composite jumped more than 2%, fueled by a rally in mega-cap tech stocks, while the Dow Jones Industrial Average added nearly 500 points, posting one of its best sessions in weeks. The S&P 500 also climbed sharply, closing over 1% higher.
Investors appeared to brush off the uncertainty surrounding trade, focusing instead on strong earnings in the tech sector and expectations that the Federal Reserve could be nearing the end of its tightening cycle.
Earlier in the day, Chinese officials pushed back on reports of trade negotiations, saying “there are currently no formal discussions underway” with the U.S.—a clear signal of the chill that still lingers in bilateral ties. The statement came in the wake of renewed calls from Trump to impose broader tariffs on Chinese goods if he is reelected.
Despite the diplomatic setback, markets remained upbeat. Apple, Nvidia, and Microsoft led gains, with chipmakers particularly strong after optimistic guidance from a key semiconductor firm.
Analysts say the market’s resilience shows investors are betting that tariff threats may be more political posturing than imminent policy, at least for now.
Stay tuned for more updates as the tariff talk heats up and Wall Street keeps a close eye on China’s next move.