Stock market recap: S&P 500 and Nasdaq Composite rebound as tariff rhetoric softens

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Nasdaq Composite rebounds

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Global indexes

- S&P 500: 6 552,51, -2.71%

- NASDAQ Composite: 22 204,43, -3.56%

- Dow Jones Industrial Average: 45 479,60, -1.90%

- FTSE 100: 9 430,34,+0.030%

- NIKKEI 225: 48 088,80, -1.01%

- HSI: 25 889,48, -1.52%

- SHANGHAI Composite: 3 889,50,-0.19%

U.S. markets

Wall Street’s premarket strength followed remarks from President Trump signaling the U.S. is “not looking to hurt” China, easing fears after threats of 100% tariffs.

With the government shutdown in its third week, investors remain data-starved; the delay in key releases has complicated rate and growth assessments. Near term, focus turns to large-cap earnings and whether guidance can validate elevated multiples in AI-levered tech, the group that led the year’s advance but bore the brunt of Friday’s drawdown.

European markets

European equities pushed higher in early trade, aided by the friendlier U.S.–China tone and corporate activity.

The pan-European STOXX 600 rose about 0.5% after a sharp Friday decline, with Germany’s DAX up 0.6%, France’s CAC 40 up 0.7%, and the U.K.’s FTSE 100 marginally higher. Germany’s wholesale price inflation accelerated to +1.2% y/y in September (from +0.7% in August), a modest upside surprise that may complicate the disinflation narrative but did little to dent risk appetite.

In single-name action, PSI Software soared 34% after Warburg Pincus said it would pursue a voluntary takeover valuing the firm above €700 million. French politics remain a watch item as Prime Minister Sébastien Lecornu, reappointed Friday, unveiled a cabinet against the backdrop of budget turbulence.

Asian markets

Asia closed broadly lower as the shutdown dragged on and U.S.–China tensions re-entered focus despite the softer U.S. tone. China’s Shanghai Composite slipped 0.19% to 3,889.50 after early losses were pared by better-than-expected September trade data.

Hong Kong’s Hang Seng fell 1.52% to 25,889.48 amid renewed tech pressure and concern over rare earth export restrictions. Japan’s Nikkei fell 1.01% to 48,088.80, with profit-taking in AI-sensitive names, while political and fiscal developments kept regional risk on edge.

Summary conclusions

The day’s setup features a tactical U.S. rebound propelled by de-escalating tariff rhetoric, a cautious European bid backed by deal headlines, and a risk-off close in Asia tied to trade and policy uncertainties.

With U.S. macro prints delayed, earnings season and policy signals will dominate. Key risks include a re-acceleration of tariff threats, shutdown spillovers into Q4 consumption and hiring, and valuation stress in AI beneficiaries.

Conversely, any durable progress on trade and a benign earnings season could stabilize sentiment and re-anchor the rally.

It was earlier reported that Nvidia stock slips 4.9% despite confirming strategic xAI investment.

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