
U.S. stock futures rose in early trading, rebounding from Friday’s sharp sell-off after President Donald Trump reassured investors that trade relations with China will all be fine. Dow futures gained 0.8%, while S&P 500 and Nasdaq 100 futures climbed 1% and 1.3%, respectively.
This spike followed Trump’s comments suggesting that he may not follow through with the China tariffs he announced last week, which had triggered a $2 trillion market wipeout on Friday.
Tech stocks, which were hit hardest in the previous sell-off due to fears over China’s role in the AI and semiconductor supply chains, could benefit most from the rebound. But despite the rebound, investors are expected to remain cautious. The U.S. government shutdown continues as a major payroll deadline approaches on October 15, and earnings season begins this week.
China, which supplies about 70% of the world’s rare earths, recently declared that starting December 1, foreign companies must obtain licenses to export products containing or using Chinese rare earth materials or technologies.
Asia-Pacific markets fell sharply on Monday as trade tensions between the U.S. and China escalated following new restrictions and mutual accusations. Hong Kong’s Hang Seng dropped 3.41%, China’s CSI 300 slid 1.76%, and South Korea’s Kospi fell 2.35%, while Japan’s markets were closed for a holiday.
Despite the trade tensions, China’s exports and imports rose strongly in September, signaling resilience in trade activity, exports grew 8.3% year over year, the fastest in six months.
Cryptocurrencies also rebounded strongly during the weekend. Bitcoin is now back to $116,000 after falling to $103,000 levels on Friday. Ether recaptured $4,200, up more than 20% from Friday’s low.
On Friday, over $19 billion in crypto liquidations occurred within 24 hours, mostly from long positions. The wave was triggered by a massive unwind of leveraged positions and a collapse in open interest, sending Bitcoin down to $103,000 and causing even deeper losses across altcoins.
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