U.S. Stocks Soar as Trade Tensions Ease, But Full Deal Could Be Years Away

Hang onto your hats, folks! U.S. stocks rocketed sky-high on Tuesday, clawing back massive losses from the day before. Why the sudden surge? Investors are betting big that the icy trade standoff between the U.S. and China is finally starting to thaw!

The Dow Jones Industrial Average shot up a whopping 1,009 points, a 2.7% jump. Not to be outdone, the S&P 500 climbed 2.4% and the Nasdaq Composite soared 2.5%. Talk about a comeback!

The market went wild after Treasury Secretary Scott Bessent dropped a bombshell at a JPMorgan meeting. He called the U.S.-China trade spat "unsustainable" and hinted that a "de-escalation" is on the horizon. "No one thinks the current status quo is sustainable," Bessent declared, sending traders into a frenzy.

Stocks with deep ties to China were riding high, with the iShares China Large-Cap ETF and the iShares MSCI China ETF each popping about 3%. It's like a party out there!

Deal could take years

But hold your horses - the rally hit a speed bump when Bessent threw cold water on the excitement. He warned that formal trade talks haven't even started yet, and a final deal could be years in the making. Talk about a buzzkill!

“If we walk out the door of negotiations and signed something in two or three years that looked like that, I would think that it’s a huge win,” he said. Patience is a virtue, right?

This wild ride comes hot on the heels of Monday's bloodbath, when the Dow plunged nearly 1,000 points after President Trump went after Fed Chair Jerome Powell again. Investors are still on edge about where U.S. trade policy is headed, especially with talks heating up with India too.

Over at Tesla, shares surged 5% as the company gears up for its earnings report. But it's been a rough year - the stock is still down about 40% amid slumping demand and political drama surrounding CEO Elon Musk. Buckle up, it's going to be a bumpy ride!

Meanwhile, in the wild world of crypto, the global market cap hit $2.85T, up 4.30% in the last 24 hours. Bitcoin (BTC) is trading at a cool $91,340. The crypto party is just getting started!