Stock futures and broader markets rallied after Friday’s selloff as comments from President Trump and Vice President JD Vance eased fears of a renewed trade war with China.
“Don’t worry about China, everything will be fine! The highly respected President Xi just had a bad time,” Trump said on his Truth Social platform on Sunday, adding “The United States wants to help China, not hurt it!!!”
JD Vance said the United States has great influence over China, but added that “Donald Trump is always willing to be a reasonable negotiator,” in an interview with Fox News over the weekend.
Assets ranging from cryptocurrencies to major commodities surged early Monday. The dollar strengthened and stock futures jumped 0.8% or more, with technology stocks leading the gains. U.S. Treasury markets were closed for Columbus Day.
Asian stocks were the exception to the global rally, catching up from Friday’s action. Hong Kong’s Hang Seng Index led the losses, falling 1.5%.
On Friday, Trump announced he would impose additional 100% tariffs on China and impose new export controls, after Beijing imposed drastic restrictions on rare earth exports. Trump’s threats sparked a market rout, with the S&P 500 and Nasdaq Composite recording their worst days since April.
Gold Futures Hit New High. Silver futures jumped 5%.
Oil futures reboundedbut gains were limited by easing tensions in the Middle East.
