U.S. stocks open higher, but China shows no signs of bowing to Trump
Global stocks on Tuesday clawed back a fraction of their enormous recent losses, with the turmoil from Trump's global tariffs last week calming in markets.
U.S. stocks opened higher Tuesday, bringing momentary relief from a massive multi-day sell-off in response to President Donald Trump's tariffs shock and even as trade tensions between the U.S. and China heated up.
The S&P 500 climbed more than 3.8%. The tech-heavy Nasdaq was about 4% higher. The Dow Jones Industrial Average gained more than 3.6% or nearly 1,400 points.
The reasons for the bounce are idiosyncratic. Some markets in Asia traded higher overnight — though this was partially in response to Chinese state funds stepping in to serve as a backstop to recent drawdowns. Japan's Nikkei stock index also surged 6% after the White House indicated it was opening bilateral trade negotiations with the longtime U.S. ally.
European stocks climbed too, led by stronger outlooks in defense groups.
U.S. indexes were also getting a boost from a better outlook for health insurance stocks, which come as the Centers for Medicare & Medicaid Services on Monday announced a 5.06% increase in Medicare payments for next year — significantly higher than expected.
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