US stock futures advanced Monday morning as investors reacted to new remarks from President Trump that pulled punches from Friday’s tariff announcements on Chinese products.
Dow Jones Industrial Average futures (YM=F) gained around 0.9%, while S&P 500 (ES=F) and Nasdaq-100 futures (NQ=F) climbed 1.3% and 1.8%, respectively.
The rebound follows Trump’s latest comments on Truth Social, where he reassured followers that relations with China “will all be fine.” The post, and subsequent comments to reporters, appeared to dial back his threat from Friday to impose an additional 100% tariff on Chinese goods from Nov. 1. The developments had reignited fears of an escalating trade war and triggered a market drop that erased roughly $2 trillion in US equity value.
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment,” Trump wrote. “He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it.”
In later comments to reporters, he said imposing the tariffs on Nov. 1 was still his plan but suggested the US and China would come to an agreement in the “eternity” of time between now and then.
Beyond trade headlines, Wall Street faces a busy and uncertain week ahead. The federal government shutdown continues into another week, raising the risk that many federal workers could miss their Oct. 15 paycheck if a funding deal isn’t reached.
Meanwhile, earnings season kicks off with results from major US. banks. JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), Citigroup (C), Bank of America (BAC), and Morgan Stanley (MS) are all set to report Tuesday and Wednesday. Analysts expect big things from the major lenders, expecting profits among six major banks to climb 6% from the third quarter of last year, according to Bloomberg data.
LIVE 1 update