U.S. stock index futures were largely steady Monday evening, holding gains from a sharp rebound earlier in the day. The recovery came as President Donald Trump’s softer tone toward China eased fears of escalating trade tensions.
As of 20:18 ET (00:18 GMT), S&P 500 Futures traded flat at 6,697.75, while Nasdaq 100 Futures rose 0.1% to 24,934.0. Dow Jones Futures also added 0.1% to 46,353.0, signaling a cautious but stable start to Tuesday’s session.
During Monday’s trading, Wall Street rebounded strongly from last week’s selloff. The S&P 500 gained 1.6%, the Nasdaq Composite climbed 2.2%, and the Dow Jones Industrial Average rose 1.3%—led by renewed buying in tech and industrial sectors.
The rally was fueled by Trump’s assurance on Truth Social that U.S.–China relations “will all be fine,” after previously threatening 100% tariffs on Chinese imports. Investors welcomed the reversal, viewing it as an effort to prevent further market instability.
U.S. Treasury Secretary Scott Bessent confirmed that Trump and Chinese President Xi Jinping are expected to meet later this month in South Korea—a sign of potential progress toward easing trade friction.
Tech and AI Stocks Drive Gains
Technology shares led Monday’s rally, buoyed by optimism that cooling trade tensions could revive global demand. Semiconductors and AI-linked companies were standout performers, reflecting renewed investor confidence in the sector’s growth outlook.
Top performers included:
- Broadcom Inc (NASDAQ: AVGO) — surged nearly 10% after announcing a partnership with OpenAI to co-develop next-generation AI processors.
- Nvidia (NASDAQ: NVDA) — advanced about 3%, extending its rebound after last week’s volatility.
- Tesla (NASDAQ: TSLA) and Alphabet (NASDAQ: GOOGL) also posted modest gains, supporting the broader tech rally.
Market analysts noted that the rebound underscores investors’ readiness to re-enter high-growth sectors following clarity on trade and monetary policy expectations.
“The tone from Washington suggests de-escalation, and tech is responding,” Saxo Bank analysts said in a note.
Shutdown, Earnings Keep Caution in Play
Despite the positive shift in sentiment, markets remain on edge amid ongoing U.S. government shutdown concerns and the start of the third-quarter earnings season.
The shutdown—now entering its third week—has delayed key federal data releases, limiting the Federal Reserve’s insight ahead of its October 28–29 policy meeting. The absence of fresh economic indicators has left traders guessing about the Fed’s next move.
Meanwhile, investors await quarterly reports from major U.S. banks for early signs of corporate resilience. JPMorgan Chase, Citigroup, and Wells Fargo are due to report Tuesday, followed by Bank of America and Morgan Stanley later in the week.
With inflation pressures cooling but fiscal uncertainty rising, investors are likely to tread carefully. For now, Trump’s softer rhetoric has steadied nerves—but markets remain alert for the next signal from Washington or Beijing.