US stock index futures rose after President Donald Trump signaled positive signs on US-China trade relations, easing fears of a trade war between the world's two largest economies.
The S&P 500 rose 1.1% to 6,665.50, the Dow Jones rose 0.7% to 46,027.0, and the tech-focused Nasdaq rose 1.6% to 24,781.0.
The gains followed a sharp drop on Friday when Wall Street posted its biggest daily drop in six months.
The major US indexes fell on Friday after Trump announced an additional 100% tariff on all imports from China and new export controls on national security-critical software.
The move came after Beijing tightened export rules on the heart of the earth, surprising markets wary of escalating trade tensions.
But on Tuesday, Trump calmed the situation by saying on social media that the US “want to help, not hurt China,” hinting that talks could continue.
Trump’s remarks eased investor concerns and sent futures higher, although market sentiment remained cautious.
China’s Commerce Ministry warned that it would retaliate if Washington went ahead with the tariff plans, insisting that China was “not afraid” of a trade war.
US Government Shutdown Continues, Earnings Season Begins
Market sentiment, however, was weighed down by the ongoing US government shutdown, now entering its second week with no clear path to resolution.
The situation has halted the release of key economic reports by federal agencies and complicated the Federal Reserve’s (Fed) task ahead of its policy meeting on October 28-29.
Meanwhile, earnings season begins this week with major US banks leading the way. Citigroup, JPMorgan Chase, Wells Fargo and Goldman Sachs are due to report on Tuesday, followed by Bank of America Corp and Morgan Stanley on Wednesday.
