US Stock Futures Climb, Rebounding From Last Week's Sell-Off
Markets see a relief rally as investors assess the latest developments in the ongoing US-China trade dispute.
US stock futures indicated a higher open on Sunday evening, staging a rebound after a sharp sell-off late last week. S&P 500 futures were up by more than 1%, with Nasdaq 100 futures showing a gain of 1.2%, as investors reacted to a potential cooling of trade rhetoric between the United States and China.
The positive momentum in the futures market comes after a bruising week for equities, which saw the Dow Jones Industrial Average post its worst day since May. The sell-off was triggered by an escalation in the US-China trade dispute, with both sides announcing new tariffs and export controls. These developments have weighed on investor sentiment, with concerns that a prolonged trade war could disrupt global supply chains and hurt corporate earnings.
Despite the recent tensions, there are signs that both the US and China may be willing to return to the negotiating table. A is anticipated later this month, which could provide a catalyst for a de-escalation of the trade dispute. suggesting that the US holds more leverage in the dispute. However, China has remained firm in its stance, with the country's Commerce Ministry urging the US to 'correct its wrong actions' and return to a dialogue based on mutual respect.
Investors will be closely watching for any new developments in the US-China trade relationship in the week ahead. Any signs of a further escalation in tensions could lead to renewed selling pressure in the stock market. Conversely, any progress towards a trade deal could provide a significant boost to equities. For now, the rebound in stock futures suggests that investors are hopeful that a worst-case scenario can be avoided.