U.S. stock futures experienced an uptick Sunday night as markets responded positively to recent comments from President Trump, which softened the impact of Friday’s tariff announcements concerning Chinese products. The Dow Jones Industrial Average futures saw an increase of approximately 0.9%, while the S&P 500 and Nasdaq-100 futures rose by 1.3% and 1.8%, respectively.
This rebound can be traced back to Trump’s statements made on Truth Social, where he sought to reassure his followers regarding U.S.-China relations, declaring that “it will all be fine.” His post, coupled with remarks made to reporters, seemed to diminish the alarm over his previous Friday announcement regarding the potential imposition of an additional 100% tariff on Chinese goods, scheduled to take effect on November 1. These threats had stoked concerns of a worsening trade war, leading to a significant market decline that wiped out approximately $2 trillion in U.S. stock value.
In his message, Trump conveyed faith in the relationship between the two countries, stating, “Highly respected President Xi just had a bad moment,” and emphasized a mutual desire to avoid economic distress. He expressed that the U.S. aims to assist rather than antagonize China. Although Trump indicated that proceeding with the tariffs on November 1 remained on his agenda, he suggested there could be a resolution between the two nations before that date.
Beyond the trade conditions affecting market dynamics, Wall Street braces for a week filled with uncertainty. The ongoing federal government shutdown threatens to affect numerous federal employees, some of whom may miss their scheduled paycheck on October 15 if a resolution is not achieved.
Adding to the week’s pivotal events, the earnings season is set to commence, with major U.S. banks poised to announce their results. Industry giants including JPMorgan Chase, Goldman Sachs, Wells Fargo, Citigroup, Bank of America, and Morgan Stanley are scheduled to report their earnings on Tuesday and Wednesday. Analysts project a 6% profit increase among these major lenders compared to the third quarter of the previous year, according to Bloomberg data.
Accompanying the buoyancy in the stock futures, oil prices also experienced a resurgence, alleviated by Trump’s remarks, allowing investors to ease their concerns regarding a potential tariff conflict between the U.S. and China.
