S&P 500, Nasdaq Futures Rebound After $2 Trillion Rout — Trump Calms China Fears, Analysts See Pullback Fueling Next Rally

U.S. stock futures rose late Sunday, pointing to a stronger start to the week as investors looked past a painful sell-off and bet on a steadier tone in U.S.–China trade relations. Markets were set to rebound after President Donald Trump said in a social media post that trade ties with China “will all be fine,” following a volatile week of policy reversals.

As of 9:30 p.m. ET on Sunday, S&P 500 futures were up 0.3%, Nasdaq 100 futures gained 1.8%, Dow futures added 0.8%, and Russell 2000 futures rose 1.6%.

Trump’s latest remarks eased fears of an escalation in trade tensions that had triggered a $2 trillion sell-off on Friday, according to a CNBC report. Major index-tracking ETFs ended the week sharply lower, with the SPDR S&P 500 ETF Trust (SPY) down 2.7%, the Invesco QQQ Trust (QQQ) off 3.5%, the iShares Russell 2000 ETF (IWM) falling 3%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) losing 1.9%.

Analysts said the pullback appeared to be part of a routine correction rather than the start of a sustained downturn. Larry Tentarelli of Blue Chip Daily Trend Report said in a post on X that declines of 3% to 5% are typical and often precede the next leg higher, noting the importance of distinguishing between short-term resets and longer-term trend reversals. 

Meanwhile, Carson Group’s Ryan Detrick added on X that the current bull market, even at its peak, had gained 89%, well below the 191% average rise of the previous 11 bull markets.

Over the weekend, Vice President J.D. Vance urged Beijing to “choose the path of reason,” while Trump signaled an opening for Chinese President Xi Jinping, saying a full trade war would harm China more than the United States. His remarks followed Friday’s announcement of a 100% tariff on Chinese goods and new export controls beginning Nov. 1, in response to Beijing’s curbs on rare-earth exports.

Earnings season continues Monday, with Fastenal Company (FAST) scheduled to report results before the market opens and Rocky Mountain Chocolate Factory (RMCF) set to release quarterly numbers after the close.

In commodities, crude oil futures rose in early Asian trading, recovering after last Friday’s sharp drop. WTI crude climbed 1.0% to $59.51 per barrel, while Brent crude gained 1.0% to $63.34. Gold futures rose 1.7% to $4,069.30 per ounce, extending recent gains. 

The yield on the 10-year U.S. Treasury note held steady around 4.03%, while the U.S. dollar index edged higher to 99.00, retracing part of last week’s losses.

Asian markets were mostly down on Monday in light trading due to a holiday in Japan. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6%, with South Korea’s Kospi down 2.1% and Australia’s S&P/ASX 200 off 0.5%. Nikkei futures traded 1.3% higher at 46,690, though still below Friday’s cash close of 48,088.

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