U.S. markets nose-dived Wednesday, with the Dow plunging 1,300 points before recovering some losses as White House plans to bail out embattled industries and cut checks to Americans failed to quell investor fears about the devastating economic impact of the coronavirus.

President Trump on Tuesday made his most pessimistic comments in weeks regarding a trade deal with China, sending chills through Wall Street just one day after ratcheting up tensions with Brazil, Argentina, and France.

Stock markets climbed Wednesday amid new optimism that high-level trade talks set to resume this week might usher in a breakthrough in the year-long U.S.-China conflict.

The Dow Jones industrial average had popped nearly 190 points, or 0.7 percent, by midday after Bloomberg News reported that a Chinese official “with direct knowledge of the talks” said that Beijing was open to a partial deal to limit the economic damage that tit-for-tat tariffs have wrought. The Standard & Poor’s 500 index was up 0.8 percent while the tech-laden Nasdaq composite closed in on 1 percent.