United States stock futures rebounded on Sunday evening (Monday AEDT), recovering from Friday’s sharp losses after President Donald Trump struck a more conciliatory tone on China, telling investors that trade relations “will all be fine”.
By 9:50 am AEDT (10:50 pm GMT), Dow futures were up 0.8%, S&P 500 futures gained 0.9%, and Nasdaq-100 futures advanced 1.2%.
The moves followed Trump’s Sunday post on Truth Social, which suggested that his administration may not immediately move forward with a “massive increase of tariffs” on Chinese imports - a threat he issued just days earlier.
Vice President JD Vance reinforced the administration’s softened tone in an interview with Fox News, saying the U.S. would be open to negotiations if Beijing is “willing to be reasonable”, while warning that Washington still holds “far more cards” should talks falter.
The reassurance helped calm investor nerves, particularly in the technology sector, which suffered the steepest losses on Friday.
Many U.S. tech firms rely heavily on Chinese rare earth minerals for the production of semiconductors, electric vehicles, and other advanced components, making them particularly sensitive to trade disruptions.
All three major U.S. benchmarks finished lower last week, with the Dow down 2.7%, the S&P 500 falling 2.4%, and the Nasdaq losing 2.5%, as rising geopolitical tensions and a protracted U.S. government shutdown weighed on sentiment.
The shutdown, now extending into a new week, is adding another layer of uncertainty for investors as a key payroll deadline approaches.
15 October marks the next scheduled payday for most federal employees, which could be the first missed salary period since the impasse began.
Meanwhile, attention will soon shift to corporate earnings as the U.S. reporting season kicks off. Major banks, including Citigroup, Goldman Sachs, Wells Fargo, JPMorgan Chase, Bank of America, and Morgan Stanley are all set to release quarterly results throughout the week.
