New York. Wall Street bounced back Monday after President Donald Trump eased his criticism of China, helping US stocks recover some of Friday’s steep losses.

The S&P 500 rose 1.1 percent, clawing back nearly half of its drop from Friday, its worst day since April. The Dow Jones Industrial Average gained 413 points, or 0.9 percent, to 38,627, while the Nasdaq composite climbed 1.3 percent.

“Don’t worry about China,” Trump wrote Sunday on his social media platform, adding that Chinese President Xi Jinping “doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”

His comments marked a sharp shift from Friday, when Trump accused China of “a moral disgrace in dealing with other nations” after receiving what he described as “an extremely hostile letter” about curbs on rare earth exports --materials critical to everything from electronics to jet engines. At the time, he had threatened to impose an additional 100 percent tariff on Chinese imports starting Nov. 1.

Trump’s softer tone lifted hopes that the world’s two largest economies could find a path toward stabilizing trade relations.

The market’s sharp swings over the past two sessions echo the volatility seen in April, when Trump’s “Liberation Day” announcement of sweeping tariffs initially sent stocks plunging before he later backtracked. If this episode follows a similar pattern, easing trade tensions could pave the way for a gradual recovery into 2026, according to Morgan Stanley strategists led by Michael Wilson.

Still, some analysts say the sell-off may have been overdue. The S&P 500’s near 35 percent surge from its April low had drawn criticism that valuations were stretched. The index remains close to last week’s record high.

Trump’s tariff reversals in April, combined with expectations of several Federal Reserve interest rate cuts, helped fuel the market rally earlier this year. But skeptics now warn that stock prices have risen much faster than corporate earnings, particularly in the artificial-intelligence sector, drawing comparisons to the dot-com bubble of 2000.

Investors are watching closely as earnings season kicks off, with JPMorgan Chase, Johnson & Johnson, and United Airlines among major companies reporting this week. Fastenal fell 4.5 percent Monday after posting slightly weaker-than-expected quarterly results.

Overseas, markets were mixed. European indexes were steady, while Asian markets fell sharply. Hong Kong’s Hang Seng dropped 1.5 percent and Shanghai’s Composite slipped 0.2 percent. China’s exports rose 8.3 percent in September from a year earlier, the fastest pace in six months, suggesting its manufacturers are shifting more sales away from the US.

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