Stocks are rebounding after President Trump softened his tone on China, easing concerns that trade tensions between the two nations could escalate after he late Friday announced an additional 100% tariff on Chinese imports.

The S&P 500 jumped 96 points, or 1.5%, to 6,637 in morning trade, while the Dow Jones Industrial Average rose 561 points, or 1.2%. The tech-heavy Nasdaq composite gained 1.9%.

Monday's gains erased some of Friday's losses, when the S&P 500 shed 2.7%, marking the index's worst day since April.

On Friday, investors were spooked by Mr. Trump's announcement of a fresh round of tariffs on imports from China, pointing to new Chinese rules that require companies to get special approval to export products containing rare-earth materials from China.

But on Sunday, Mr. T

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