The rally was triggered in part by remarks that Treasury Secretary Scott Bessent delivered at a closed-door investor summit hosted by JP Morgan in Washington, D.C. As first reported by Bloomberg, Bessent told the audience that he expected the tariff situation with China to de-escalate while characterizing the ongoing standoff as unsustainable.

U.S. stocks tumbled and bonds sold off Monday after President Donald Trump lobbed new insults at Federal Reserve Chair Jerome Powell, pressuring him to cut interest rates while markets are already contending with shocks from his tariff policy.