US stock markets have experienced significant fluctuations as optimism over potential tariff negotiations with China triggered sharp rallies, with the Dow Jones surging over 1,300 points at one point. Despite early gains, uncertainty surrounding the imposition of 104% tariffs on some Chinese goods looms over the markets. While traders initially celebrated the prospects of diplomatic talks, many have expressed skepticism about the sustainability of the rallies, especially after the markets surrendered a portion of their gains throughout the day. As global markets also witness fluctuations, investors remain wary as the threat of an escalating trade war persists.