NEW YORK — U.S. stocks jumped in a widespread rally Tuesday, and other U.S. investments steadied a day after falling sharply on worries about President Donald Trump’s trade war and his attacks on the head of the Federal Reserve.

The S&P 500 climbed 2.5%. The Dow Jones Industrial Average rose 1,016 points, or 2.7%, and the Nasdaq composite gained 2.7%. All three indexes more than made up their big losses from the start of the week.

The value of the U.S. dollar also stabilized after sliding against the euro and other competitors.

Losers on Wall Street were the exceptions, though, as 99% of the stocks within the S&P 500 index rose. All told, the S&P 500 climbed 129.56 points to 5,287.76. The Dow Jones Industrial Average gained 1,106.57 to 39,186.98, and the Nasdaq composite jumped 429.52 to 16,300.42.

Meanwhile, Treasury Secretary Scott Bessent said that the ongoing tariffs showdown against China is unsustainable and he expects a “de-escalation” in the trade war between the world’s two largest economies.

But in a private speech in Washington for JPMorgan Chase, Bessent also cautioned that talks between the United States and China had yet to formally start. President Donald Trump placed import taxes of 145% on China, which has countered with 125% tariffs on U.S. goods.

Israeli attacks in Gaza: Israeli strikes on the Gaza Strip killed at least 17 Palestinians, mostly women and children, and destroyed bulldozers and other heavy equipment that had been supplied by mediators to clear rubble. Separate strikes killed two people in Lebanon.

Also on Tuesday, Prime Minister Benjamin Netanyahu and President Trump spoke by phone, two weeks after the two met in Washington. Trump wrote on his social networking site Truth Social that the two spoke about trade and Iran, among other issues. “The call went very well — We are on the same side of every issue,” he wrote.

Netanyahu’s visit to Washington was not deemed a rousing success after he appeared to fail to secure the support he wanted from Trump on issues such as stopping Iran from developing nuclear weapons, reducing Trump’s tariffs, the influence of Turkey and the war in Gaza.