Wall Street's main indexes ended sharply higher Monday, led by gains in Broadcom and other chipmakers, after President Donald Trump struck a conciliatory tone about renewed U.S.-China trade tensions, easing investor worries.

Lifting sentiment, U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network that Trump was on track to meet his Chinese counterpart in South Korea as the two sides work on de-escalating trade frictions that grew late last week.

AI-related tech stocks were the biggest winners in Monday's rebound, with Broadcom surging after partnering with OpenAI to produce the startup's first in-house artificial intelligence processors.

"AI continues to be the momentum driver, and it's not surprising investors have purchased the dip," said Sam Stovall, Chief Investment Strategist at CFRA Research, adding that investors should remain cautious as long as Trump's dispute with China remains unresolved.

Wall Street tumbled on Friday, with the S&P 500 and Nasdaq posting their steepest weekly declines in months.

The latest rupture followed China's announcement on Thursday that it would dramatically expand its rare earths export controls. In retaliation, Trump on Friday said he would apply an additional 100% tariff on imports from China and impose export controls on all critical U.S.-made software from November 1.

However, over the weekend, Trump said "it will all be fine" and that the U.S. did not want to "hurt" China. China on Sunday blamed the U.S. for the escalation but did not roll out further countermeasures.

Other AI-related chipmakers also gained, with Nvidia and Micron Technology both climbing, while the PHLX chip index rose sharply.

JPMorgan Chase, Goldman Sachs, Citigroup , and Wells Fargo are set to release quarterly results on Tuesday, kicking off an earnings season that investors will watch closely for signs of how tariffs are impacting Wall Street's largest companies.

Earnings reports will provide fresh clues on the economy at a time when major official data releases remain delayed due to an ongoing government shutdown. Analysts on average expect S&P 500 companies' third-quarter earnings to grow 8.8% from a year ago, according to LSEG data.

According to preliminary data, the S&P 500 gained 101.38 points, or 1.55%, to end at 6,654.67 points, while the Nasdaq Composite gained 490.18 points, or 2.20%, to 22,692.57. The Dow Jones Industrial Average rose 591.13 points, or 1.29%, to 46,070.73.

In the Middle East, Hamas freed the last living Israeli hostages from Gaza and Israel sent home Palestinian detainees as part of a ceasefire deal pushed by Trump.

Oracle jumped after at least two brokerages raised their price target on the AI cloud firm.

Estee Lauder advanced after a report that Goldman Sachs upgraded the stock's rating to "buy" from "neutral." Fastenal dropped after the industrial supplies distributor missed third-quarter profit expectations.