SPX: S&P 500 Futures Rebound After Trump Waves Away Tariff Fears: “Don’t Worry About China”

Another rollercoaster weekend that started with “I’m slapping 100% tariffs on China” and ended with “It will all be fine. President Xi had a bad moment.” Are tariffs on or off again?

📈 Futures Pump on Trump Update

• After a brutal Friday selloff, US stock futures roared higher Monday, with S&P 500 futures up 1.2%, Dow futures climbing 0.8%, and Nasdaq futures gaining 1.7%. The bounce came after President Donald Trump assuaged market fears with softer rhetoric toward China.
• “Don’t worry about China, it will all be fine!” Trump wrote on Sunday, dialing back two days after threatening to slap 100% tariffs on Chinese imports. The about-face helped reverse Friday’s tariff-fueled panic.
• The rebound comes after a Friday meltdown when the Dow plunged nearly 900 points, with the S&P 500 down 2.7% and the Nasdaq tumbling 3.6%, as investors priced in a full-blown trade war redux.

💸 Look Back: Tariffs Rattle Stocks

• Friday’s chaos began when Trump threatened fresh tariffs on all Chinese imports, responding to Beijing’s surprise move to restrict exports of rare earth minerals, critical components in EVs and chips.
• On Sunday, however, the tone changed drastically — Trump said Chinese President Xi Jinping “had a bad moment.” "He doesn't want depression for his country, and neither do I," he said. "The U.S.A. wants to help China, not hurt it," Trump added.
• We can’t not address the elephant in the room. It was likely another Trump-led market rinse-and-repeat cycle: tweet, panic, rebound. Futures are recovering, but not without a $1.6 trillion hole in US stocks that liquidated thousands of traders.

💼 Look Ahead: Earnings

• Monday marks Day 13 of the US government shutdown, which continues to block economic data releases and cloud the macro landscape. With nothing that can be done there, investors are shifting focus to what they can do — participate in corporate earnings.
• This week kicks off banking season, with JPMorgan JPM, Goldman Sachs GS, and Wells Fargo WFC reporting on Tuesday. Expect commentary on credit quality, consumer spending, and how financials are handling higher-for-longer rates.
• Even without key data from Washington, earnings from America’s biggest banks could set the tone for the market’s next move — and maybe distract traders from the latest tariff drama (for now). Domino’s Pizza DPZ and BlackRock BLK will join the Tuesday update.