US stocks rebounded on Monday after President Donald Trump signalled a softer approach on China, easing market fears of escalating tariffs and a potential trade clash.The S&P 500 rose 1.1%, recovering nearly half of its steep decline on Friday, which had marked its worst drop since April. The Dow Jones Industrial Average gained 413 points, or 0.9%, while the Nasdaq composite advanced 1.3% as of 9:35 a.m. Eastern time, AP reported.“Don’t worry about China,” Trump posted on his social media platform Sunday. He added that China’s leader Xi Jinping “doesn’t want Depression for his country, and neither do I. The US wants to help China, not hurt it!!!”The statement marked a sharp turnaround from Trump’s Friday comments, when he criticised China as “a moral disgrace in dealing with other Nations” and referenced “an extremely hostile letter” outlining export curbs on rare earths. Trump had warned of an additional 100% tariff on Chinese imports starting November 1.Trump’s backtrack has raised hopes that the two largest economies may find a working relationship that allows global trade to continue. Morgan Stanley strategists, led by Michael Wilson, noted that if tensions ease similarly to past episodes, stock markets could see a rolling recovery extending into 2026.Analysts also said the US stock market had been primed for a pullback, given its rapid ascent. The S&P 500 has surged nearly 35% from April lows and was still trading near an all-time high last week. Many observers warn that prices have outpaced corporate profits, particularly in sectors such as artificial intelligence, which some critics liken to the 2000 dot-com bubble.Investors are now closely watching the upcoming earnings season, with major companies including JPMorgan Chase, Johnson & Johnson, and United Airlines scheduled to report their summer-quarter profits. Early movers such as Fastenal tumbled 4.5% after posting slightly weaker-than-expected quarterly earnings.Markets overseas showed mixed trends following sharp losses in Asia. Hong Kong’s Hang Seng Index fell 1.5% while Shanghai’s Composite Index dropped 0.2%. China reported that global exports rose 8.3% in September from a year earlier, the strongest growth in six months, signalling that manufacturers are diversifying sales beyond the US