Stock futures are experiencing a slight shift after a significant rebound on Wall Street, with the S&P 500 achieving its most substantial daily gain since May. This positive turn comes after a challenging week, where major averages faced substantial losses. The Dow Jones Industrial Average futures saw a modest increase of 19 points, while S&P 500 and Nasdaq-100 futures remained relatively stable. The S&P 500 and Dow both surged by over 1%, marking the S&P 500's most significant one-day gain since May 27. This recovery effort saw the broad market index reclaim more than half of its Friday decline. The Dow, breaking a five-day losing streak, achieved its best day since September 11, recovering two-thirds of its Friday losses. These positive movements were triggered by a Truth Social post from President Donald Trump, which alleviated investor concerns regarding escalating trade tensions between China and the U.S. Trump's message, 'Don't worry about China, it will all be fine,' had a notable impact on tech stocks like Oracle, AMD, and Nvidia, propelling the market higher. The tech-heavy Nasdaq saw a substantial gain of over 2%. UBS Global Wealth Management's Ulrike Hoffmann-Burchardi noted that trade policy remains a significant factor in US financial markets, with last week's re-escalation of tensions between the U.S. and China. She predicts increased market volatility until the end of the month, but also highlights the historical pattern of Trump-Xi negotiations, suggesting that escalation often leads to tactical truces. Investors are now focused on sustaining this momentum, with major banks like JPMorgan Chase and Goldman Sachs set to report third-quarter earnings on Tuesday.
