US stock futures experienced an uptick Monday morning, buoyed by fresh remarks from President Trump that seemed to mitigate concerns stemming from recent tariff announcements regarding Chinese imports. The futures for the Dow Jones Industrial Average (YM=F) rose about 0.9%, while the S&P 500 (ES=F) and Nasdaq-100 futures (NQ=F) saw increases of 1.3% and 1.8%, respectively.
This rebound comes in the wake of Trump’s comments on his platform, Truth Social, where he expressed confidence in the future of US-China relations, declaring, “Don’t worry about China, it will all be fine!” His remarks appeared to soften his earlier threats to impose additional tariffs of 100% on Chinese goods starting November 1. In response to the announcement on Friday, markets had plunged, erasing approximately $2 trillion in US equity value due to renewed fears of an escalating trade war.
Trump emphasized the potential for a positive relationship with China, remarking that President Xi Jinping had simply experienced “a bad moment.” He stressed that neither country desires an economic downturn, adding, “The U.S.A. wants to help China, not hurt it.” Additionally, when speaking to reporters, Trump acknowledged that while he still plans to implement tariffs on November 1, he is optimistic that both nations will reach an agreement in the time “between now and then.”
As Wall Street navigates this week, it faces a landscape filled with uncertainty. The federal government shutdown continues, which could impact federal workers’ paychecks if a funding resolution is not reached by the critical date of October 15.
Moreover, the earnings season is set to commence, highlighted by reports from several major US banks. Firms including JPMorgan Chase, Goldman Sachs, Wells Fargo, Citigroup, Bank of America, and Morgan Stanley are scheduled to release their quarterly results on Tuesday and Wednesday. Analysts are projecting a notable increase in profits among these banks, with expectations of a 6% rise from the same period last year, based on Bloomberg data.
In related news, oil prices experienced a rebound following Trump’s conciliatory remarks, which have helped investors reduce their concerns regarding potential tariffs that could lead to a retaliatory price hike. The easing of trade fears is contributing to a more stable outlook for commodities in the wake of recent volatility.
