Stock Market Today: Dow Futures Jump 300 Points After Trump Says ‘Don’t Worry About China’

On Sunday, US President Donald Trump sought to calm nerves Posted on Social TruthThis came after he announced on Friday that it would be imposed 100% additional tariff on China Reducing US exports of software.

“Don’t worry about China, everything will be fine!” books. “The well-respected President Xi has had a bad moment. He doesn’t want his country to suffer a depression, and neither do I. The United States wants to help China, not hurt it!!!”

Meanwhile, Vice President J.D. Vance said Fox News Sunday morning futureHe said the United States was willing to be rational if China was, though he insisted that Trump had the upper hand with “a lot more cards” than Beijing did.

The shift in tone contrasts with Trump’s fiery speech on Friday He also criticized China for its new controls on exports of rare earth elements, which are critical inputs across a range of industries.

“Market participants appear to be leaning into the TACO trade again, fueled not only by what we’ve seen in the recent past, but also by conciliatory statements over the weekend from both President Trump and Vice President Vance, suggesting that Friday’s announcement of additional 100% tariffs on Chinese imports is likely to be more than just a negotiation tactic,” said Michael Brown, chief research strategist. At Pepperstone, in a note on Sunday.

Futures contracts tied to the Dow Jones Industrial Average rose 323 points, or 0.7%. S&P 500 futures rose 0.9%, and Nasdaq futures jumped 1%.

The yield on the 10-year Treasury note fell 8.9 basis points to 4.059%. The US dollar rose by 0.13% against the euro and by 0.58% against the yen.

Trump had previously imposed 145% tariffs on China, then suspended them to allow negotiations to take place. A similar pattern has occurred with other trading partners such as the European Union, leading Wall Street to dismiss extremist threats with the United States The taco business (Trump always brings out the chicken)..

Brown said Trump’s new tariffs on China, which will take effect on November 1 and will bring the total level to 130%, appear to be another example of an “escalate to de-escalate” strategy.

“Assuming this is another ‘taco’ situation, and some clarity is gained on this front before too long, this will likely prove to be another decline in the stock that should be viewed as a buying opportunity, with the path of least resistance continuing to lead higher, albeit in a somewhat choppy fashion,” he added.

Meanwhile, Brown predicted that the Fed’s shift to lower interest rates amid strong economic growth will continue to strengthen the dollar, which will likely shrug off tariff threats.

Likewise, Ed Yardeni, president of Yardeni Research, a market veteran, sees the United States and China as falling off a cliff.

“If neither side blinks, the US and Chinese economies will lead the global economy into a deep recession, if not a depression,” he wrote in a note on Sunday. “But we expect both sides to back down very soon given the very negative consequences of the trade war between the world’s two largest economies.”

For her part, Beijing remained defiantThe Commerce Ministry said on Sunday that China does not want a tariff war but is also not afraid of one. It also said that the export controls do not represent a ban on rare earth shipments but rather a sovereign right.

But China’s new rare earth export policy He raises the bet Far beyond another exchange of trade war against the United States

Dean Paul, who served as a senior advisor in the White House Office of Science and Technology Policy earlier this year, Written on X On Saturday, the policy gives Beijing the ability to “prevent any country on Earth from participating in the modern economy.”

Dali Yang, a political science professor at the University of Chicago, sounded a similar warning in A Post on SundaySaying that this move represents a defining moment that reveals what a Chinese-led system might look like.

Looking beyond rare earths, they are those that leverage control over strategic materials and technologies to support global influence.

China is effectively saying: We control the arteries of high-tech civilization. The rest of the world now sees this message clearly, Yang wrote, and is striving to build new circulatory systems.