Dow futures rise 400 points after Trump and Vance calm markets on China

Stock futures It rebounded on Monday President Trump and Vice President J.D. Vance sought to allay investors’ fears of a renewed trade war with China.

Futures contracts Linked to the Dow Jones Industrial Average S&P 500 futures rose about 80 points, or 1.1%, and Nasdaq 100 futures rose more than 400 points (1.5%).

Gold hit an all-time high of $4,099.80 per ounce, up 2.5%. Silver futures rose 5%, while Brent crude rose 1.5% to $63.68 per barrel.

Treasury markets were closed for the Columbus Day holiday.

Cryptocurrencies also rose in early trading, tracking assets with broader risks.

“The highly respected President Xi had a bad moment,” Trump said Sunday on Truth Social, adding: “Don’t worry about China, everything will be fine!… The United States wants to help China, not hurt it!!!”

These comments represent a rapid reversal from Friday, when Trump threatened to do so Imposing a “massive increase” in customs duties Beijing was accused of becoming “extremely hostile” after it restricted exports of rare earth minerals vital to US industries.

Vice President Vance He also struck a conciliatory tone on SundayHe told Fox News that the United States has “a great deal of leverage” over China, but “Donald Trump is always willing to be a rational negotiator.”

These statements helped stabilize global markets After their worst stumble in one day in six months.

Friday’s selloff sent the Dow Jones down 878 points — or nearly 1.9% — after Trump canceled a planned meeting with Chinese President Xi Jinping and warned of “potentially painful” tariffs.

The S&P 500 and Nasdaq both posted their worst single-day losses since April, erasing the week’s gains.

Technology stocks with heavy exposure to China took the brunt of the hit, with Nvidia, AMD and Tesla shares falling between 5% and 8%.

Unrest came in Beijing A decision to tighten restrictions on the export of rare earth metalsIt is a key component in clean energy, defense, and semiconductor production.

Trump accused China of trying to keep the world “captive” by using its control over important minerals as a weapon.

His comments sent prices for rare earth producers such as MP Materials and USA Rare Earth soaring, while Chinese technology companies Alibaba and JD.com fell.

Markets now appear to be betting that the latest tone from the White House indicates a calming of tensions rather than an escalation.

Traders pointed to recent moves by the administration to support mining projects in North America — including last week’s U.S. purchase of a 10% stake in Canada’s Trilogy Metals — as evidence that Washington is taking steps to diversify supplies of critical minerals without reigniting an all-out tariff war.

Trilogy shares jumped more than 200% after the deal was announced, as the company promoted plans to develop huge copper and cobalt deposits in Alaska’s Ambler region.

The White House said the investment reflects a “renewed federal commitment to responsible resource development” with the goal of reducing dependence on China, which currently controls about 90% of rare earth processing.

Monday’s rebound came despite continued weakness in Asia, where markets have yet to digest the rise in the United States. Hong Kong’s Hang Seng Index led the losses, falling 1.5%.