S&P futures experienced an uptick on Monday, recovering from the sell-off observed on Friday, following President Donald Trump’s assertion that trade relations with China “will all be fine.” Futures for the Dow Jones Industrial Average increased by 434 points, representing an approximate 1% rise. S&P 500 futures advanced by 1.3%, while Nasdaq-100 futures increased by 1.9%. Tech giants Apple and Meta Platforms experienced an increase of over 1% each. AMD experienced an increase of 4.2%, while Nvidia saw a rise of 3.4%.

The recent developments follow a post by Trump, which implied to investors that the president might not adhere to his earlier threat of implementing a “massive increase of tariffs” on China. The remarks made on Friday reignited discussions surrounding the U.S. trade conflict with China, resulting in a significant decline in stock prices that erased $2 trillion in market capitalization. “Don’t worry about China; it will all be fine!” President Xi, a figure of considerable respect, has recently experienced a challenging incident. “He doesn’t want Depression for his country, and neither do I,” Trump wrote. “The U.S.A. aims to assist China, rather than harm it.” Vice President JD Vance reiterated those sentiments over the weekend. He informed that the U.S. will engage in negotiations if Beijing is “willing to be reasonable,” although he noted that the U.S. possesses “far more cards” should that not be the case.

Such remarks may incentivize investors to re-enter the market following Friday’s decline, particularly in technology stocks that experienced the most significant downturn. A significant number of technology firms depend on China’s rare earth elements for the production of semiconductors and electric vehicles, among various other products. “Tech stocks were front and center in the sell-off as investors fear this situation with US/China would put a major dent in the AI Revolution thesis and bring us back to the dark days of April,” Dan Ives, noted in a Sunday communication. “It is our assessment that the rhetoric will prove to be more severe than the actual consequences in this scenario. We anticipate that Trump and Xi will convene in the coming weeks to address these matters, and it is probable that the looming tariff threat set for November 1 will be alleviated.” Last week, all three major averages experienced a decline, with the Dow decreasing by 2.7%. The S&P 500 experienced a decline of 2.4% during the period, whereas the Nasdaq recorded a decrease of 2.5%. The S&P 500’s 2.7% decline on Friday marked its most significant decrease since April, a period during which the stock market was still grappling with the repercussions of Trump’s initial tariff announcement.

However, additional concerns are escalating for the market. The government shutdown extends into another week, coinciding with an impending payrolls deadline. On October 15, the upcoming pay date for the majority of federal employees may mark the first instance in which numerous workers do not receive their salaries. This week marks the commencement of earnings season, beginning with the financial sector. Citigroup, Goldman Sachs Group, Wells Fargo, JPMorgan Chase, Bank of America, and Morgan Stanley are scheduled to release their results on Tuesday and Wednesday. A series of regional banks are poised to announce their quarterly earnings.