Stocks rallied Tuesday on hopes that U.S.-China trade tensions could ease soon, as investors recovered most of the steep declines suffered in the previous session. The Dow Jones Industrial Average rose 1,003 points, or 2.6%. The S&P 500 gained 2.6%, and the Nasdaq Composite
climbed 2.9%.

The major averages spiked to their highs of the day after Bloomberg News reported, citing sources, that Treasury Secretary Scott Bessent told a group of investors Tuesday that the trade war with China was unsustainable. According to the report, Bessent also said that a deal between the two nations was possible.

Stocks closely tied to China got a boost on the report. Nvidia popped to trade 3% higher, while Tesla jumped 6.4%. AMD was up more than 1%, erasing an earlier decline.