Dow futures jump 400 points, rebound from Friday's rout after yet another Trump U-turn

US stock futures are looking to recover some of the lost ground on Friday, rebounding in late Sunday trading after yet another U-Turn from US President Donald Trump on the trade issues with China.

The Dow futures are trading with gains of over 350 points as the futures market opened on Sunday evening. The futures linked to the S&P 500 and the Nasdaq are up 70 points and 330 points respectively.

On Friday evening, Trump announced that China is turning increasingly hostile out of nowhere and a possible outcome being discussed is a major increase in tariffs on China. On Saturday, Trump announced that all imports from China will be hit with an additional 100% tariff from November 1, in addition to the current tariffs being paid, which ranged from 7.5% on consumer goods, to as high as 50% for steel and aluminium.

The announcements led to a $2 trillion rout on Wall Street, with the Dow Jones falling nearly 900 points, and the Nasdaq sliding over 3.5%.

However, in a swift U-Turn, Trump wrote on Truth Social that “everything will be fine with China”, and that the US wants to help them. This, after Vice President JD Vance claimed that the US holds more cards in this tariff back-and-forth, in comparison to China.

There has been no official comment though on whether the November 1 threat to China still persists or it has also been withdrawn. The Chinese administration is yet to issue an official statement in this regard, after calling the US “bullies” over the weekend, and justifying their export curbs on rare earth minerals.