Global Stocks Rebound as China Promises to “Fight to the end” on Tariffs

Takeaways from the Key Takeaways

• Global stocks are rising Tuesday as some investors profit from recent massive losses. China, however, has threatened to strike back if President Donald Trump raises U.S. tariffs on imports by another 50%.
• Dow Jones Industrial Average Futures are rising by 2%.
• Hong Kong's Hang Seng, where the biggest Chinese companies are listed, rose 1.5% as China said it would "fight to the end" if Trump increases his tariffs again.  

Global stocks are rising Tuesday as some investors profit from recent massive losses. China, however, has threatened to strike back if President Donald Trump raises U.S. tariffs on imports by another 50%.

U.S. stock indexes are poised for a positive start, with Dow Jones Industrial Average futures rising 2%, S&P 500 futures gaining 1.5%, and Nasdaq futures 1.3% higher.  

The Stoxx Europe 600 Index is up by about 1.5% but still down more than 10 percent in the last week.

In Asia, the Nikkei closed up 6% after Treasury Secretary Scott Bessent told Fox Business that he expected Japan to get priority in trade talks "just because they came forward very quickly." Hong Kong's Hang Seng, where the biggest Chinese companies are listed, rose 1.5% as China said it would "fight to the end" if Trump increases his tariffs again.  

In a note Tuesday, Morgan Stanley said it expects Trump's reciprocal tariffs to go into effect but thinks "there is scope for some rates to be negotiated lower into year end." The investment bank downwardly revised its outlook for the U.S. economy for "even slower growth and a sharp firming of inflation."