US Stock Futures Rally on US-China Trade De-escalation Hopes
Presidential comments soothe investor fears after a volatile week, signaling a potential thaw in trade tensions and sparking a risk-on sentiment in the market.
US stock futures surged in overnight trading, as investors welcomed a significant de-escalation in trade rhetoric between Washington and Beijing. The rally followed comments from President Trump suggesting the US 'wants to help' China, a stark reversal from the previous week's confrontational tone that had rattled global markets.\n\nThe positive sentiment provided a much-needed reprieve for investors after a turbulent week. had previously sent markets into a tailspin, wiping out nearly $2 trillion in US stock value. The sell-off was triggered by threats of additional tariffs on Chinese imports and new export controls on critical software from the US, which were met with strong condemnation and promises of retaliation from Beijing.\n\nHowever, the market narrative shifted dramatically following a social media post from President Trump, which stated, 'The U.S.A. wants to help China, not hurt it!!!' This conciliatory message appeared to be the primary catalyst for the overnight rally, with S&P 500 futures climbing 1.1% and Nasdaq 100 futures surging 1.6% as of Sunday evening. has renewed hopes for a resumption of trade negotiations.\n\nDespite the optimistic market reaction, some analysts remain cautious. China's Commerce Ministry had earlier issued a statement that it was 'not afraid' of a trade war and would take all necessary measures to protect its interests if Washington proceeded with its tariff plans. While , the situation remains fluid, and the market will be closely watching for concrete policy changes to support the shift in tone.