Markets Rally as U.S. Signals Trade War Respite

Major stock indexes rose as the U.S. showed a willingness to ease its trade tensions with China. The dollar gained while gold dipped, reflecting a positive market reaction. U.S. President Trump hinted at a fair trade deal, and certain corporate earnings buoyed stocks further, with Tesla jumping 8.1%.

Major stock indexes experienced significant gains as signals of de-escalation in the trade war between the U.S. and China emerged from the Trump administration. This development saw the dollar strengthening against other major currencies, while gold, traditionally a safe-haven asset, fell.

U.S. President Donald Trump addressed the matter, promising a fair trade deal with China. Although details were sparse, the sentiment was enough to boost investor confidence. Tesla shares saw a notable 8.1% increase, propelling further market optimism despite missing analyst expectations.

The shift in market tone was also influenced by some positive earnings reports. Despite these market gains, concerns remain about the potential impact of ongoing tariffs on inflation and U.S. Treasury creditworthiness, highlighted by industry leaders like Citadel's Kenneth Griffin.

(With inputs from agencies.)