FX.co ★ US Futures Rise as Trump Softens Tariff Rhetoric

U.S. stock futures saw an uptick on Monday following President Donald Trump’s indication that he may reconsider his earlier aggressive stance on imposing significant new tariffs on China. In a post on Truth Social, he assured that trade relations with Beijing "will all be fine." Vice President JD Vance reinforced this sentiment, stating that the U.S. is prepared to enter negotiations if China demonstrates "reasonableness." These comments came on the heels of a steep market downturn on Friday, where Trump's warning of a "massive" tariff increase resulted in widespread declines after China’s announcement of new export controls on rare earth materials essential for the production of semiconductors and electric vehicles. The Dow Jones Industrial Average fell by 1.9%, the S&P 500 decreased by 2.71%, and the Nasdaq went down by 3.56%, marking Wall Street’s most significant single-day decline since April. Technology and semiconductor stocks were particularly affected, with companies like Nvidia, AMD, and Tesla seeing declines between 4.9% and 7.7%. Investors are now turning their attention to the upcoming earnings reports from major banks, including Citigroup, Goldman Sachs, Wells Fargo, JPMorgan Chase, Bank of America, and Morgan Stanley, expected later this week.