Wall Street rebounds sharply, surging over 3% in opening

U.S. markets opened sharply higher on Tuesday, rebounding from recent declines as optimism grew over potential trade deals that could ease tariffs imposed by President Trump.

After trillions of dollars were wiped from the combined value of global equity markets since last week, share prices across the globe clawed back some ground as investors assessed the possibility of Washington tempering some of the levies.

All three major Wall Street indices rose more than 3% in early trading and opening. The broad-based S&P 500 gained 3.1%, while the Dow Jones Industrial Average, composed of 30 prominent blue-chip stocks, climbed 3.2%. Meanwhile, the tech-heavy Nasdaq jumped 3.5%.

Trump reported having a “great call” with the South Korean president on his Truth Social platform, indicating that trade talks were not limited to one country and that many nations were showing interest in negotiating with the United States. He suggested that multiple discussions were underway, reflecting a broader effort to ease global trade tensions.

U.S. Treasury Secretary Scott Bessent, in an interview with CNBC, said Japan had shown the most initiative in moving forward with trade negotiations. He also criticized China’s decision to impose retaliatory tariffs on American goods, calling it a “big mistake,” which suggested a more confrontational stance toward Beijing.

Market analyst Patrick O’Hare from Briefing.com characterized Tuesday’s stock market rebound as a “relief rally”—a short-term recovery driven by optimism rather than fundamentals. He highlighted that China remained the key unresolved issue in the ongoing tariff dispute, referring to it as “the elephant in the tariff room,” and pointed out that the direction of trade negotiations with the European Union was still unclear.