Wall Street ends sharply higher on Trump China comments

STORY: U.S. stocks ended sharply higher on Monday, with the Dow adding about 1.3%, the S&P 500 climbing more than 1.5% and the tech-heavy Nasdaq jumping more than 2.2% to notch its biggest one-day gain since May 27.Following a Friday sell-off, President Donald Trump calmed investors' nerves on Monday by striking a more conciliatory tone regarding trade talks with China, explains Kevin Nicholson, global fixed income chief investment officer at RiverFront Investment Group."The market is having a good day today, and that's a rebound from what happened on Friday and that's largely because the Trump administration, along with China, have agreed to continue to have trade talks. And so I think that we've backed away a little bit from the strong demands that we were making as far as sanctions and 100% tariffs on Chinese goods going forward, and I think that that helped the market to kind of calm down as the administration walked some of that back."AI-related tech stocks were the biggest winners in Monday's rebound.Broadcom surged almost 10% after partnering with OpenAI to produce the startup's first in-house AI processors.Other AI-related chipmakers also gained, with Nvidia climbing more than 2.5% and Micron Technology jumping over 6%.And AI cloud firm Oracle jumped more than 5% after at least two brokerages raised their price target on the company's stock.Third quarter earnings kick off Tuesday, with several big banks reporting. Investors will be looking closely for signs of how Trump's tariffs are impacting Wall Street's largest companies.

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