U.S. stock futures rebound as Trump says ‘It will all be fine’

U.S. stock markets bounced back on Sunday after suffering a significant decline on Friday, which was triggered by former President Donald Trump’s announcement that he may impose an additional 100% tariff on Chinese goods.

The rebound came after Trump tried to reassure the public through a social media post, saying, “Don’t worry about China, it will all be fine.” His comments helped restore some investor confidence, leading to a recovery across major stock indexes.

All three of the main U.S. stock indexes — the Dow Jones, S&P 500, and Nasdaq — rose noticeably. Other financial markets also responded positively. Bitcoin increased by more than 3% and was trading above $115,000. Gold and silver prices climbed, and crude oil also saw gains. Meanwhile, the U.S. dollar remained relatively stable against other major currencies.

The renewed tensions between the U.S. and China have raised concerns about the possibility of another trade war. Trump’s threat was in response to China’s decision to limit exports of rare earth materials, which are essential for producing high-tech devices. China currently dominates the global supply of these resources.

Although the situation has created uncertainty, some analysts believe the risk is lower than it appears. A report from investment firm Wedbush described the current market reaction as a “buying opportunity” for technology stocks. The analysts said they expect the situation to calm down and predicted that Trump and Chinese President Xi Jinping will eventually reach an agreement.

However, China has shown no signs of backing down. In a statement, the Chinese Commerce Ministry said, “We do not want a tariff war but we are not afraid of one.” U.S. Vice President J.D. Vance also commented, saying Trump is still open to negotiations if China is willing to be reasonable.

Speaking to reporters aboard Air Force One, Trump said he still expects a deal to be made and pointed out that the November 1 deadline for the new tariffs is still far off.

Markets had fallen sharply on Friday, with the Dow dropping 1.9%, the S&P 500 falling 2.7% — its worst day since April — and the Nasdaq sliding 3.6%. All three indexes ended the week with losses.

Monday is Columbus Day, also recognized as Indigenous Peoples’ Day in the U.S. While the stock market will be open, the bond market will be closed for the holiday.