Stock futures showed a strong recovery on Monday. This followed efforts by President Trump and Vice President J.D. Vance to ease investor worries regarding a potential trade conflict with China.
Futures tied to the Dow Jones Industrial Average increased by nearly 400 points, around 0.8%, reaching 46,054. Similarly, S&P 500 futures gained almost 80 points, or 1.1%, and Nasdaq 100 futures rose by over 400 points, close to 1.5%.
Gold prices surged by 2.5%, hitting a record high of $4,099.80 per ounce. Meanwhile, silver futures went up by 5%, and Brent crude oil prices rose 1.5% to $63.68 a barrel.
The government bond market remained closed due to the Columbus Day holiday.
In addition, cryptocurrencies experienced an upward trend in early trading, reflecting a broader movement in risk assets.
President Trump made some remarks on Truth Social, stating that “Respected President Xi just recently had his worst moment” and assured, “Don’t worry about China, everything will be fine! … America wants to help China, not hurt it!!!”
This statement marked a significant shift from Friday, when Trump had threatened a “significant increase” in tariffs, criticizing the Chinese government for being “extremely hostile” after its decision to restrict exports of crucial rare earth minerals for U.S. industries.
Vice President Vance also adopted a conciliatory tone during a Fox News segment on Sunday, asserting that while the U.S. has substantial influence over China, “Donald Trump is always going to try to be a rational negotiator.”
These comments contributed to stabilizing global markets, which had seen their largest single-day drop in six months.
The Dow Jones experienced a decline of 878 points, or nearly 1.9%, on Friday after Trump canceled a proposed meeting with Chinese President Xi Jinping, warning of potentially severe tariffs.
The S&P 500 and Nasdaq saw their steepest losses since April, wiping out gains from earlier in the week.
Tech companies heavily linked to China, like Nvidia, AMD, and Tesla, dropped between 5% and 8% due to the turmoil, which came after China tightened its export controls on rare earth minerals—essential for clean energy, defense, and semiconductor production.
Trump accused China of attempting to hold the world captive through its control of critical minerals.
In the aftermath of his statements, stocks of rare earth producers such as MP Materials and USA Rare Earths surged, while Chinese tech firms like Alibaba and Jingtocom saw declines.
Market participants seem to be interpreting the White House’s recent remarks as signs of de-escalation rather than escalation.
Traders also noted the administration’s commitment to boosting North American mining efforts—highlighting the U.S. acquisition of a 10% stake in Canada’s Trilogy Metals last week—as a step towards diversifying critical mineral supplies without escalating a full-blown tariff conflict.
Following the announcement, Trilogy’s stock price skyrocketed over 200%, as the company expressed plans to tap into significant copper and cobalt deposits in Alaska’s Ambler region.
The White House indicated that this investment showcases “the federal government’s renewed commitment to responsible resource development,” aimed at reducing reliance on China, which dominates around 90% of rare earth processing.
Despite this rebound, Asian markets continued to struggle, with Hong Kong’s Hang Seng Index leading the downturn, falling by 1.5%.
