Trump remarks spark late rally as Dow falls then recovers

Bears pushed the Dow lower for most of the trading day before late-afternoon remarks by former President Donald Trump prompted a rally that erased much of the intraday losses. Late buying lifted the S&P 500 and Nasdaq Composite by the close.

Early trading saw selling of cyclical and large industrial stocks, which drove the Dow into negative territory. Traders focused on the week’s economic calendar and a steady stream of corporate earnings, leaving equities sensitive to signals that could affect growth and interest-rate expectations.

Markets turned after the remarks were interpreted by some participants as clarifying trade and regulatory policy. Buying concentrated in large-cap names that had led the decline, helping the Dow recover ground. Trading volume rose during the rebound, reflecting short-covering and fresh inflows.

Sector performance shifted with the rally. Financials and industrials were among the stronger groups, while defensive sectors pared gains as investors rotated back into growth-sensitive stocks. Volatility indicators eased from intraday highs as late-session buying reduced price swings.

Fixed-income markets reacted to the change in equity sentiment. Treasury yields moved modestly as market participants adjusted expectations for economic momentum and central bank policy. Currency and commodity markets showed smaller moves consistent with a tilt toward risk-on positioning.

Traders noted that late-session comments can prompt rapid re-pricing as participants reposition ahead of the close. Investors will watch upcoming economic reports and central bank communications for further direction.