After a sharp drop before the weekend, the U.S. stock market saw a rebound on the 13th. According to AFP on October 14, the rebound in the U.S. stock market coincided with a moment when President Trump, after threatening to impose high tariffs on China, had softened his stance.

Previously, Trump had "lost his temper" on the 10th due to China's announcement of restrictions on rare earth exports, and announced that he would impose high tariffs on China. However, by Sunday, the 12th, Trump posted on social media, saying "everything will be okay," and claimed that the United States hopes to "help" China, showing a markedly different attitude from when he previously threatened to wield the tariff stick.

Stock market traders, AFP

However, from the reaction of the investment market, the major stock indices in the U.S. have indeed followed the change in Trump's attitude, regaining most of the losses they had suffered earlier. On the 13th, the Nasdaq index, which has a higher proportion of technology stocks, led the rise, with a gain of 2.2%; the Dow Jones index surged 630 points, closing up 1.4%.

AFP cited Adam Salhan, an analyst at 50 Park Investments, who said: "Trump has changed his tone and clearly indicated that Sino-U.S. relations will improve, which is obviously a positive signal for the market." He also said: "It looks like a reassuring rebound."

Regarding this situation where the stock market falls when Trump speaks harshly and rises when he speaks kindly, professional investors in the U.S. are also quite helpless. Patrick O'Hehir, an analyst at the financial market website Briefing, bluntly stated: "To be honest, the back-and-forth posts on social media mean nothing, but the fact is, the stock market seems willing to play the role of a puppet."

O'Hehir added regarding the ease with which stock prices can be influenced: "The price movement on Friday showed that the market's pricing is too fragile for things that could threaten the optimistic outlook supporting stock prices."

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