• U.S. stocks rebounded sharply after President Trump softened his tone on China tariffs.
• The S&P 500 rose 1.1%, with the Nasdaq composite gaining 2.2% on Monday.
• Major companies like JPMorgan Chase and Johnson & Johnson are set to report their earnings this week.

U.S. stocks rallied on Monday after President Trump signaled a **softer approach** on tariffs against China, which had previously rattled markets. The S&P 500 increased by 1.1%, recovering nearly half of Friday’s drop, marking the worst decline since April. The Dow Jones Industrial Average gained 413 points, or 0.9%, while the Nasdaq composite surged by 1.3% as of 9:35 a.m. Eastern time. Trump's statements included assurances that "it will all be fine" with China, contrasting sharply with his earlier rhetoric, denouncing China as "a moral disgrace" due to export controls on rare earth materials, according to Indiatimes, CBS News, and Los Angeles Times.

This turnaround came after Trump had threatened a **100% tariff** on Chinese imports, which had alarmed investors. Following his conciliatory remarks on social media, the markets reacted positively, with analysts stating that this "relief rally" signifies a temporary easing of tensions. "Things have calmed down almost as dramatically as the flare up on Friday," noted analyst Fawad Razaqzada from City Index. Major gains were seen across technology stocks, particularly after Broadcom announced a partnership with OpenAI, leading to a significant spike in its stock, according to South China Morning Post, CBS News, and Los Angeles Times.

Market observers have noted that while this rebound is significant, underlying concerns remain, particularly regarding corporate profitability as the earnings season nears. Analysts are closely monitoring forthcoming reports from major companies, including **JPMorgan Chase**, **Johnson & Johnson**, and **United Airlines**. "Earnings season will shed crucial light on how companies are faring amidst these turbulent economic conditions," stated Chris Larkin from E*TRADE. Overall, Wall Street's response indicates cautious optimism, although potential for renewed trade tensions persists, according to Indiatimes, CBS News, and Los Angeles Times.