Stocks are rebounding from Friday’s selloff after President Trump said trade relations with China “will all be fine.”

A selloff in Chinese stocks was triggered by Trump’s Friday threat to impose an additional 100% tariff on China imports.

A sharp sell-off in China stocks faded in choppy trading on Monday, allowing the market to trim early losses, as investors reassessed the impact of a renewed trade war between Washington and Beijing after taking profit to cut risks.

US stocks surged on Monday, bouncing back from Friday's rout after President Trump played down the escalating US trade standoff with China, saying it "will all be fine!" Stocks are set to recoup some of Friday's hefty losses after Trump dialed back his Friday threat to impose an additional 100% tariff on Chinese goods from Nov.

Equity strategists at Morgan Stanley are warning that the S&P 500 may experience an unexpectedly large correction if a new trade agreement between the U.S. and China is not reached before Nov. 1. As my colleague Barbara Kollmeyer reported,

Chinese mom-and-pop investors are stampeding into the stock market for fear of missing out on the bull run, with more than 1.6 million share trading accounts newly opened in December, doubling from a year earlier,

Trump's said his new tariffs and export curbs would take effect on November 1 and threatened to cancel a meeting with Chinese President Xi Jinping later this month in South Korea.