Wall Street takes back some of Friday's losses as Trump softens tone on China trade talks

Gains by chipmakers pushed Wall Street significantly higher before markets opened Monday as trade tensions between China and the U.S. appeared to soften over the weekend

Gains by chipmakers pushed Wall Street significantly higher before markets opened Monday as trade tensions between China and the U.S. appeared to soften over the weekend.

Futures for the Dow Jones Industrial Average rose 0.9% before the bell, while futures for the S&P 500 jumped 1.2%. The technology-focused Nasdaq soared 1.7%. Monday’s early gains were not enough to offset Friday’s wipeout, which saw the S&P 500 sink 2.7% and the Dow industrials fall 1.9%. The Nasdaq composite lost 3.6%.

On Monday, Beijing urged U.S. President Donald Trump to withdraw a threat he made Friday to crank tariffs on Chinese-made goods higher after China placed stricter restrictions on exports of rare earths, which are materials critical for manufacturing everything from consumer electronics to jet engines.

The potential for more friction between the world’s two biggest economies rattled markets, giving U.S. shares their worst day since April. But over the weekend, Trump adopted a more conciliatory stance, easing investors’ jitters.

While Trump did not withdraw his threat, he struck a more moderate tone, saying in a Truth Social post Sunday, “The U.S.A. wants to help China, not hurt it!!!”