U.S. Stock Futures Rebound as Trump Seeks to Ease China Trade Fears
U.S. stock futures rose sharply on Sunday evening, recovering part of last week’s heavy losses. The rebound came after President Donald Trump struck a reassuring tone on trade relations with China, calming worries about a potential escalation in the trade conflict between the two largest global economies.
As of 19:43 ET (23:43 GMT), S&P 500 futures gained 1.1% to 6,665.50, Dow Jones futures rose 0.7% to 46,027.0, and Nasdaq 100 futures surged 1.6% to 24,781.0.
Trump’s Comments Spark Market Optimism
The bounce followed Friday’s steep sell-off, when Wall Street posted its worst single-day decline in six months. Major U.S. indexes fell sharply after Trump announced plans to impose an additional 100% tariff on all imports from China, along with new export restrictions on certain U.S.-made software vital to national security.
The Dow Jones Industrial Average dropped 1.9%, the S&P 500 lost 2.7%, and the Nasdaq Composite slid 3.6%, with technology and chip stocks taking the hardest hit.
Beijing’s move to tighten rare earth export rules had already raised market anxiety. Trump’s tariff plans further unsettled investors. However, his latest remarks on social media appeared to reverse that tone.
On Sunday evening, Trump wrote, “Don’t worry about China, it will all be fine.” He added that “the U.S.A. wants to help China, not hurt it,” hinting that negotiations could still move forward. These comments helped ease investor tension and triggered renewed buying in futures trading, even though overall sentiment remained cautious.
China’s Response and Broader Market Concerns
China’s Commerce Ministry responded by warning that it would take “all necessary measures” if Washington proceeds with its tariff threats, adding that it was “not afraid” of a trade confrontation.
Meanwhile, optimism was limited by the ongoing U.S. government shutdown, which has entered its second week with no resolution in sight. The stalemate has delayed key economic reports, leaving the Federal Reserve with limited data ahead of its upcoming October 28–29 policy meeting.
Earnings Season Set to Begin
Investors are now shifting focus to the start of the U.S. corporate earnings season. Major banks are leading the lineup this week. Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), and Goldman Sachs (NYSE:GS) are scheduled to report on Tuesday, followed by Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) on Wednesday.
