U.S. Markets Rally As European Stocks Recover After Tariff Turmoil

UNITED STATES – U.S. and European markets rebounded Friday, with the S&P 500, Dow, and NASDAQ all jumping around 4%, lifted by hopes that trade tensions could ease.

Major tech names like Nvidia and Tesla led the gains, while European indexes also closed more than 3% higher.

Optimism followed President Trump’s comments that negotiations are underway with South Korea and Japan. But not everyone’s convinced the worst is over as analysts say markets are still on edge, reacting sharply to every trade-related move.

Meanwhile, Treasury Secretary Scott Bessent called China’s tariff retaliation a “big mistake,” after Trump warned Beijing to back down or face even steeper penalties.