TLDR
- U.S. stock futures jumped Monday morning with Dow futures up 1%, S&P 500 futures up 1.3%, and Nasdaq 100 futures up 1.9% after Friday’s selloff
- President Trump reassured investors on Sunday saying “Don’t worry about China, it will all be fine” after threatening 100% additional tariffs on Chinese goods on Friday
- Trump’s Friday tariff threat wiped roughly $2 trillion from U.S. stock market value as investors feared an escalating trade war with China
- The government shutdown entered its 13th day, delaying key economic data releases including the consumer inflation report moved from Wednesday to October 24
- Major banks including JPMorgan Chase, Goldman Sachs, Wells Fargo, and Citigroup report third-quarter earnings this week with analysts expecting 6% profit growth
U.S. stock markets prepared to recover from Friday’s losses after President Donald Trump eased concerns about escalating trade tensions with China. Dow Jones Industrial Average futures climbed 437 points or 1% in early trading Monday.
S&P 500 futures jumped 1.3% while Nasdaq 100 futures gained 1.9%. The recovery came after Friday’s selloff erased roughly $2 trillion in stock market value.
Trump triggered Friday’s market drop by threatening to impose an additional 100% tariff on Chinese goods starting November 1. The announcement came in response to China’s plans to restrict rare earth mineral exports.
On Sunday, Trump posted on Truth Social attempting to calm investor worries. He wrote “Don’t worry about China, it will all be fine” and called Chinese President Xi Jinping “highly respected.”
Trump suggested Xi “just had a bad moment” and said the U.S. wants to help China rather than hurt it. He later told reporters that the November 1 tariff deadline remains in place.
BREAKING: Trump just posted this about China.
Taco time. pic.twitter.com/b3smphowUD
— Spencer Hakimian (@SpencerHakimian) October 12, 2025
The president indicated that the U.S. and China could reach an agreement in the time between now and the deadline. His comments appeared designed to pressure Beijing while preventing further market panic.
Market Faces Data Blackout
The U.S. government shutdown reached its 13th day on Monday. The funding impasse has delayed the release of key economic data reports.
The consumer inflation report originally scheduled for Wednesday was pushed back to October 24. Other scheduled data including retail sales and wholesale inflation figures face similar delays.
If Congress fails to reopen the government by Friday, Federal Reserve officials will enter their pre-meeting blackout period without crucial economic information. Fed Chair Jerome Powell is scheduled to speak Tuesday about the economic outlook and monetary policy.
Banking Sector Kicks Off Earnings Season
Wall Street’s biggest banks begin reporting third-quarter results this week. JPMorgan Chase, Goldman Sachs, Wells Fargo, and Citigroup report on Tuesday.
#earnings for the week of October 13, 2025https://t.co/hLn2sKQhEY$ASML $BLK $JPM $TSM $GS $FAST $C $BK $WFC $UAL $JNJ $IBKR $DPZ $JBHT $KEY $PGR $BAC $DLTR $ALLY $ERIC $INFY $MS $SLB $SCHW $SYF $STT $HOMB $HWC $CSX $KARO $ACI $BCE $TRV $ABT $AXP $CMC $EQBK $CFG $FBK $FHN… pic.twitter.com/81HjUOVbPf
— Earnings Whispers (@eWhispers) October 10, 2025
Bank of America and Morgan Stanley follow with results on Wednesday. Analysts expect profits at the six major banks to increase 6% compared to the third quarter of last year.
Other companies reporting earnings this week include United Airlines and Taiwan Semiconductor Manufacturing. The earnings season arrives as markets navigate trade uncertainty and data delays.
The 10-year U.S. Treasury yield fell 11 basis points to 4.04%. Gold futures jumped 2.3% to $4,093 per ounce, setting another record high.
The dollar gained 0.1% against a basket of other currencies. China reported that its export growth exceeded forecasts in September as it increased trade with countries other than the United States.
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