Wall Street kicked off the week in full risk-on mode after President Donald Trump softened his tone on China over the weekend, reversing much of Friday's sharp sell-off and reigniting risk appetite across asset classes.

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The S&P 500 jumped 1.5%, clawing back more than half of its 2.7% drop from Friday, the index's worst session since April. The Nasdaq 100 surged nearly 2%, halving its prior 3.5% decline, and was on track for its best day since May.

The Dow Jones Industrial Average rose 1.3%, while small-caps led the advance with the Russell 2000 up 2.3%.

The rebound came after Trump appeared to walk back his tariff threats on Chinese imports.

“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I,” he wrote.

Away from markets, Trump ...