In a stunning turn of events, US stocks opened higher on Monday, rebounding sharply from a tumultuous sell-off that had investors on edge just days earlier. With fears of a renewed US-China trade conflict looming large, many wondered if the markets could withstand the pressure.

The Dow soared by 486 points, marking an impressive 1.07% increase, while the S&P 500 and tech-heavy Nasdaq followed suit, gaining 1.3% and 1.74%, respectively. This marked a significant recovery after the S&P 500 experienced its worst day since April, shedding a staggering $1.56 trillion in market value, as reported by FactSet.

The trade tensions erupted after President Donald Trump threatened to impose new triple-digit tariffs on Chinese imports, sending shockwaves through the market. However, sentiment began to lift when Trump reassured investors via social media on Sunday, stating: “Don’t worry about China, it will be all fine!”

Amid this uncertainty, gold and silver emerged as safe havens, with their futures climbing 2.6% and 5.8%, respectively. Investors seemed to be hedging their bets against potential turmoil.

Meanwhile, major stock markets across the Asia-Pacific region struggled earlier on Monday, grappling with the specter of a renewed trade war between the world's two largest economies. Trump's threats coincided with Beijing tightening its grip on rare earths—vital minerals for tech and automotive industries, where China holds a dominant position in the global supply chain.

This situation escalated after recent US export controls aimed at China, despite earlier signs of progress in trade negotiations over the summer. The new restrictions, which will take effect in November, could severely impact East Asian economies, including Japan, South Korea, and Taiwan, all of which play crucial roles in the global tech landscape.

Key Asian stock indexes closed lower as a result, with Hong Kong’s Hang Seng Index plummeting 1.7%, China’s Shanghai composite dipping 0.2%, and South Korea’s KOSPI falling 0.72%. Australia’s S&P/ASX 200 also dropped 0.84%.

Trump, seemingly caught off guard by what he termed China’s “hostile” actions, announced plans for an additional 100% tariff on Chinese goods starting November 1. This move would escalate total duties on imports from China to around 130%, nearing the peak of 145% seen during the height of the trade conflict last spring.

Friday's rapid escalation of trade tensions had a direct impact on US stocks, resulting in the Dow’s most significant one-day drop since May. In retaliation, China’s commerce ministry asserted that the nation is “not afraid” of a trade war, urging for further negotiations instead.

Despite the heated exchanges, there appears to be room for dialogue, as the Trump administration has softened its tone slightly. In a Trust Social post, Trump noted that the US “wants to help China, not hurt it,” adding ambiguity to his earlier comments of reassurance.

US stock futures responded positively to Trump’s remarks, suggesting a potential continuation of this rollercoaster ride. Over in Europe, most indexes opened slightly higher, with Germany’s DAX rising 0.35% and France’s CAC remaining flat.

Vice President JD Vance weighed in, urging China to “choose the path of reason,” emphasizing that the US holds “far more cards” if China reacts aggressively. “It’s going to be a delicate dance, and a lot of it is going to depend on how the Chinese respond,” he cautioned on Fox News Sunday.

As the situation continues to develop, all eyes are on how these trade tensions will unfold and what it means for the global economy.