- Dow Jones rebounds as Trump softens China tariff stance, easing global market fears and lifting U.S. futures after the steep sell-off.
U.S. stock futures edged higher early Monday as markets reacted to a softer tone from President Donald Trump and Vice President JD Vance over the weekend. The move follows Friday’s sharp sell-off that rattled global risk assets after Trump’s threat to impose 100 % tariffs on Chinese imports.
“Don’t worry about China, it will all be fine!” Trump wrote on Truth Social, adding that the U.S. wanted to “help China, not hurt it.” Vance echoed the remarks on Fox News, calling Trump “a tough but reasonable negotiator,” comments that helped calm fears of an extended trade confrontation.
Futures linked to the Dow Jones Industrial Average gained about 0.7 % in early trading, while contracts tied to the S&P 500 and Nasdaq-100 also advanced. The U.S. Treasury market remains closed for Columbus Day, keeping volumes lighter than usual.
Dow Jones Chart Analysis After Tariff-Driven Volatility
The DJIA is trading near 45,950.57 after bouncing slightly from intraday lows around 45,600. Investor caution is observed following last week’s tariff turbulence.
- Support near 45,600: This level has acted as the short-term floor. A clean break below it could expose further downside toward 45,200.
- Resistance around 46,800: This remains the immediate ceiling and the level bulls need to reclaim to shift short-term sentiment. Failure to do so could keep pressure on the index.
- Momentum: Hourly candles show smaller ranges after the sharp Friday drop, suggesting consolidation. Volume has also eased, a sign that traders are waiting for fresh direction from U.S.–China headlines or the first batch of Q3 earnings.
Overall, the Dow remains vulnerable but not broken.
Global Markets Mixed After Tariff Volatility
Asian equities failed to mirror Wall Street’s optimism, catching up to Friday’s global rout. Hong Kong’s Hang Seng Index fell 1.5 %, weighed by weakness in tech and property shares, while Japan’s Nikkei 225 slid 0.9 %.
European stocks opened higher as investors priced in a possible cooling of U.S.–China tensions. The Stoxx 600 gained 0.6 %, led by industrials and autos. The dollar strengthened slightly against major peers, and oil prices edged lower following last week’s spike on trade and supply concerns.
Dow Jones Top Company Headlines
Jefferies Seeks to Calm Investors After First Brands Fallout
The Wall Street firm said it can absorb any losses tied to the First Brands bankruptcy after its own shares tumbled 18 % last week.
JPMorgan to Invest $10 Billion in U.S. National-Security Companies
The bank plans to take stakes in mineral producers and AI firms viewed as strategically vital, aligning with Washington’s broader push to secure critical supply chains.
Lloyds Banking Group Adds $1.07 Billion to Car-Loan Redress
The British lender expanded provisions after determining more historical claims qualify for compensation.
Tata Capital’s $1.75 Billion IPO Extends India’s Listing Surge
Shares of the non-bank financial firm made a modest debut, adding momentum to India’s busy equity-raising season.
Paramount Eyes Warner Bros. Discovery Deal
David Ellison’s group is exploring a shareholder-direct approach after earlier talks stalled, in what could create a sprawling entertainment conglomerate.
Wingtech Shares Plunge on Dutch Government Intervention
The Netherlands stepped in to review the Chinese company’s local chip operations on national-security grounds, sending its shares sharply lower.
Economic Outlook: Split Between Growth and Jobs
A new Wall Street Journal survey shows forecasters expecting stronger headline growth but weaker hiring through year-end, a sign of a “split-screen economy.” Analysts also warn the Federal Reserve’s independence could come under political pressure ahead of next year’s elections.
Meanwhile, China’s exports rose at the fastest pace in six months despite new U.S. tariffs, underscoring the resilience of its manufacturing sector even amid rising trade friction.
Stock Market Week Ahead: Earnings Season, Fed Signals, and Shutdown Watch
With the S&P 500 on track for its weakest October since 1990, investors are bracing for a flood of third-quarter earnings. Key releases this week include JPMorgan, Tesla, and Netflix.
In Washington, the government shutdown continues to strain contractors and federal agencies. On the monetary front, Fed officials have hinted that further rate cuts remain possible if labor conditions soften further.
For now, the market mood is cautiously optimistic, aided by Trump’s latest remarks but tempered by the realization that one weekend’s calm doesn’t erase months of trade tension.
The index is rebounding after President Trump softened his tone on China, easing fears of a full-scale trade war. Investors are rotating back into industrials and bank stocks after last week’s steep losses.
As of the latest update, the Dow Jones Industrial Average stands at 45,964.49, posting modest gains as markets stabilize from recent tariff-driven volatility.
Caution is warranted. While sentiment has improved, uncertainty around trade policy and the government shutdown could spark more swings. I suggest waiting for confirmation that the rebound is holding before adding new exposure.
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