U.S. stocks looked set to rebound after President Donald Trump softened his tone on China, reassuring investors after his renewed tariff threats on Friday sent the market tumbling.
Futures tracking the Dow Jones Industrial Average climbed 455 points, or 1%. S&P 500 futures jumped 1.4%, and contracts tied to the tech-heavy Nasdaq 100 gained 1.9%.
The yield on the 10-year U.S. Treasury note fell 11 basis points to 4.04%. Gold futures jumped 2.3% to $4,093 an ounce, hitting yet another record, and the dollar climbed 0.1% against a weighted basket of its peers.
The three major indexes plummeted on Friday after Trump threatened “a massive increase” of tariffs on Chinese goods in response to China’s plans to limit exports of rare earth minerals. But the president on Sunday signaled the trade dispute was salvageable, which appeared to soothe Wall Street.
“Don’t worry about China, it will all be fine!” Trump wrote in a post on Truth Social. “Highly respected President Xi just had a bad moment,” he added, in an apparent reference to Beijing’s rare earth export controls.
The fresh tariff uncertainty comes just as the third-quarter earnings season ramps up. Banks Goldman Sachs and JPMorgan, big four carrier United Airlines, and chip maker Taiwan Semiconductor Manufacturing are among the companies set to report results this week.
The U.S. government shutdown also dragged on into its 13th day. Markets will be starved of fresh economic data until the funding impasse is resolved, although investors probably care more about the tariff threat and earnings right now.