Dow Jones bounces back with 1,000 point gain amid optimism regarding US-China trade war

The stock market closed on a high Tuesday, after Treasury Secretary Scott Bessent expressed optimism that there would be a “de-escalation” in the U.S. trade war with China in the near future.

All three major stock market indexes closed with gains, with the Dow Jones Industrial Average gaining 1,016.57 points, or 2.66%, at the close of business. The S&P 500 rose by 2.51%, while the Nasdaq Composite gained 2.71%, according to CNBC.

The increase comes after Bessent told investors in a closed-door meeting that “no one thinks the current status quo is sustainable” when it comes to tariffs imposed by the U.S. and Chinese governments, the outlet reported, citing a person in the room.

The numbers come after the Dow suffered a 971-point loss on Monday amid tensions between President Donald Trump and Federal Reserve Chairman Jerome Powell.

Misty Severi is a news reporter for Just the News. You can follow her on X for more coverage.