As US President Donald Trump took to social media on Sunday to reassure the public about China, equities across the board firmed up, with the Nasdaq Composite leading the charge with a 1.9% gain. The surprise tweet came after a week of heightened tensions between the two nations, with markets eagerly awaiting any signs of a potential thaw in relations.

Trump’s message was simple yet reassuring: “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.” The US President went on to emphasize that the US wants to help China, not hurt it.

The tweet seemed to have struck a chord with investors, who were visibly relieved by Trump’s softer tone. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all saw gains of over 1%, with the former two indexes reaching their highest levels in over a week.

The shift in tone from Trump comes at a time when markets were growing increasingly concerned about the potential fallout from the ongoing trade war between the US and China. With both sides refusing to back down, fears of a full-blown economic conflict had been weighing heavily on investor sentiment.

However, it’s worth noting that Trump’s tweet did little to address the underlying issues driving the trade tensions. While the gesture may provide some short-term relief, a lasting resolution to the dispute will likely require more substantial concessions from both sides.

In other markets, the dollar saw a minor retreat amidst the optimism surrounding Trump’s tweet. The Euro, which had been under pressure in recent days due to concerns about the European economy, saw some respite, while commodity prices rebounded on hopes of a potential thaw in trade tensions.

Looking ahead, investors will be keeping a close eye on upcoming events, including this week’s OPEC MOMR and speeches from central bankers such as the BoE’s Mann, Fed’s Paulson, and RBA’s Hauser. With markets still uncertain about the future of trade relations between the US and China, any signs of progress or resolution could have a significant impact on investor sentiment.

While Trump’s tweet may have provided some temporary relief to jittery markets, a lasting solution to the trade tensions will require more substantial concessions from both sides. Nonetheless, the shift in tone from the US President is a positive development, and one that could potentially pave the way for a more constructive dialogue between the two nations.