Wall Street Opens Sharply Higher On Hopes Of Tariff Talks

By Stefan J. Bos, Chief International Correspondent Worthy News

NEW YORK/BEIJING/AMSTERDAM (Worthy News) – A trend in Asia and Europe continued, with Wall Street’s main indexes on Tuesday rising after a bruising selloff that wiped out trillions of dollars since last week after U.S. President Donald J. Trump imposed tariffs on nearly all nations, including uninhabited islands.

Worthy News already reported early Tuesday local time in Asia that investors seemed to see some hope amid the carnage, picking up cheaper stocks.

Leaders of numerous countries have reportedly called President Trump to make a deal, though critics, including some linked to his administration, were skeptical.

In Europe, some stock market indexes, such as the AEX index, composed of Dutch companies, have regained even half of their previous losses.

Investors are awaiting signs of the U.S. opening up for negotiations over some of the aggressive tariffs.

Shortly after the opening bell, the Dow Jones Industrial Average rose 861.5 points, or 2.27 percent, to 38827.1. The S&P 500 rose 131.3 points, or 2.59 percent, at the open to 5193.57.

The Nasdaq Composite rose 577.8 points, or 3.70 percent, to 16181.041.

Canada’s main stock index also opened higher, with information and technology stocks leading the gains after three straight sessions of heavy selling.

‘GREAT CALL’

It came while Trump said he discussed tariffs, shipbuilding, and potential energy deals in a “great” call with acting South Korean President Han Duck-soo after similar talks with other leaders.

“We have the confines and probability of a great DEAL for both countries. Their top TEAM is on a plane heading to the U.S., and things are looking good,” Trump added in a social media post-Tuesday.

He said they also discussed payment for U.S. military protection, as thousands of American troops are in the region in the aftermath of the Korean War that confirmed the split of Korea into the North and South.

Yet criticism is mounting, with even Trump’s billionaire aide, Elon Musk, launching a barrage of social media posts criticizing one of the lead White House advisers for President Trump’s aggressive tariff plan and reportedly making personal appeals to Trump.

Musk also posted a video on his social media platform X in which the late conservative economist Milton Friedman mentioned the benefits of international trade cooperation or “the impersonal operation of prices,” revealing the materials from different nations that go into a simple wooden pencil.

Observers saw Musk’s break with Trump over a signature administration priority as the highest-profile disagreement between the president and one of his key advisers, who poured nearly $290 million into backing him and other Republicans in last year’s elections.

Musk has led the U.S. DOGE Service’s cost-cutting efforts since January, slashing tens of thousands of public service jobs.

MORE DISAGREEMENTS

He has also disagreed with other members of Trump’s coalition on issues such as H1-B visas for skilled immigrants and DOGE’s government spending approach, according to sources familiar with his thinking.

The attempted intervention came as Trump threatened Monday to impose new 50 percent tariffs on imports from China in addition to the 34 percent taxes he announced last week, although he added that he was open to negotiations.

That left leaders in the European Union, the world’s largest multi-national single market of 450 million consumers, fearing China would dump its cheap products there due to Trump’s tariffs.

In a phone call with China’s Premier Li Qiang, the EU’s chief executive Ursula von der Leyen “stressed the responsibility of Europe and China, as two of the world’s largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field.”

Both politicians discussed setting up a mechanism to track possible trade diversion caused by the tariffs, von der Leyen’s office said, as the EU fears China will redirect cheap exports from the U.S. to Europe.

Earlier on Tuesday, Beijing rebuked Trump after he announced an additional 50 percent tariff on Chinese imports, calling it “blackmail.” Premier Li called U.S. tariffs “typical unilateralist, protectionist, economic bullying” and reportedly defended China’s countermeasures.

Yet, with talks on settling tariffs underway and Trump under pressure to strike deals, investors seemed to have some hope of a return to profitability for unvalued stocks.

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