How Trump’s softer tone sparked a premarket turnaround
The American stock market has developed a knack for keeping investors on their toes, and this morning is no exception. The dust of Friday’s rout hasn’t yet settled on Wall Street, but as dawn approaches, futures are surging back, driven not by profits or data, but by a single phrase from President Trump: “Don’t worry about China, it will all be fine!” Sometimes, it takes just a few words to change the rhythm of the world’s most watched market.
It’s a story that’s become familiar this year. The week ended with traders in shock after Trump stunned markets with a threat: a 100% tariff on Chinese imports, effective November. In a matter of hours, the S&P 500 had logged its sharpest weekly fall since April, with tech giants like Nvidia and Tesla tumbling by as much as 5%. But as Asian markets closed, the President shifted his stance with a reassuring message for both Wall Street and his Chinese counterpart, and suddenly risk appetite was back on the menu.
Premarket rally: The art of a U-turn
By the time Americans brewed their Monday coffee, Dow futures were already up 400 points. The Nasdaq and S&P 500 futures both climbed near 1%, reversing almost half of Friday’s dive. Investors know better than to ignore a presidential pivot on China. Mike Dolan, senior market analyst at Reuters, summed it up: “Markets are looping through familiar narratives, but what’s different today is how quickly sentiment resets on political signals.”
Trump’s switch from tough talk to reassurance did more than calm stocks. It turbocharged tech shares: Nvidia sprang 3% higher in early market trade, with AMD and Tesla snapping back as well. According to a global note from UBS Wealth Management, “The bull market remains strong, and any pullbacks should provide a chance for investors who are underexposed to equities to consider increasing their long-term investments.”
Even China, usually quick with tit-for-tat tariffs, held its fire, at least for now. Beijing’s Commerce Ministry called for “dialogue instead of threats,” hinting at a possible thaw if tempers cool. As Jack Chen, chief strategist at IG, put it: “No one wants this to spiral. Investors will look for any sign of progress at the next global summit.”
The challenges ahead: Banks, shutdown, and volatility
Of course, the calm feels uneasy. Volatility soared last week as the so-called ‘fear gauge’ hit levels not seen since the spring. Traders are bracing for a crucial earnings season, with JPMorgan, Citigroup, and Goldman Sachs all due to report this week. Analysts expect bank profits to rise by 6%, but with the ongoing government shutdown entering its third week and key economic data delayed, even the pros are proceeding with caution.
Katy Kaminski, chief research strategist at AlphaSimplex, told Yahoo Finance, “Only something seismic can spook the rally now. But with the shutdown and trade tension unresolved, everyone’s buckled in for a bumpy ride.”
For now, the market’s mood has swung from panic to hope. But as the sun rises over Wall Street, no one is taking anything for granted. This market listens closely and today, every word matters.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Invest in 11,000+ US stocks & ETFs
The American stock market has developed a knack for keeping investors on their toes, and this morning is no exception. The dust of Friday’s rout hasn’t yet settled on Wall Street, but as dawn approaches, futures are surging back, driven not by profits or data, but by a single phrase from President Trump: “Don’t worry about China, it will all be fine!” Sometimes, it takes just a few words to change the rhythm of the world’s most watched market.
It’s a story that’s become familiar this year. The week ended with traders in shock after Trump stunned markets with a threat: a 100% tariff on Chinese imports, effective November. In a matter of hours, the S&P 500 had logged its sharpest weekly fall since April, with tech giants like Nvidia and Tesla tumbling by as much as 5%. But as Asian markets closed, the President shifted his stance with a reassuring message for both Wall Street and his Chinese counterpart, and suddenly risk appetite was back on the menu.
Premarket rally: The art of a U-turn
By the time Americans brewed their Monday coffee, Dow futures were already up 400 points. The Nasdaq and S&P 500 futures both climbed near 1%, reversing almost half of Friday’s dive. Investors know better than to ignore a presidential pivot on China. Mike Dolan, senior market analyst at Reuters, summed it up: “Markets are looping through familiar narratives, but what’s different today is how quickly sentiment resets on political signals.”
Trump’s switch from tough talk to reassurance did more than calm stocks. It turbocharged tech shares: Nvidia sprang 3% higher in early market trade, with AMD and Tesla snapping back as well. According to a global note from UBS Wealth Management, “The bull market remains strong, and any pullbacks should provide a chance for investors who are underexposed to equities to consider increasing their long-term investments.”
Even China, usually quick with tit-for-tat tariffs, held its fire, at least for now. Beijing’s Commerce Ministry called for “dialogue instead of threats,” hinting at a possible thaw if tempers cool. As Jack Chen, chief strategist at IG, put it: “No one wants this to spiral. Investors will look for any sign of progress at the next global summit.”
The challenges ahead: Banks, shutdown, and volatility
Of course, the calm feels uneasy. Volatility soared last week as the so-called ‘fear gauge’ hit levels not seen since the spring. Traders are bracing for a crucial earnings season, with JPMorgan, Citigroup, and Goldman Sachs all due to report this week. Analysts expect bank profits to rise by 6%, but with the ongoing government shutdown entering its third week and key economic data delayed, even the pros are proceeding with caution.
Katy Kaminski, chief research strategist at AlphaSimplex, told Yahoo Finance, “Only something seismic can spook the rally now. But with the shutdown and trade tension unresolved, everyone’s buckled in for a bumpy ride.”
For now, the market’s mood has swung from panic to hope. But as the sun rises over Wall Street, no one is taking anything for granted. This market listens closely and today, every word matters.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs