US futures jump 1% after Donald Trump assures ‘fine’ relations with China

United States equity-index futures jumped on Sunday night, and oil rebounded as US President Donald Trump assured that relations with China “will be fine”.

S&P 500 contracts climbed almost 1%, following a 2.7% slump on Friday, the benchmark's biggest loss in six months, according to a Bloomberg report.

Meanwhile, the 10-year US Treasury futures contract opened higher, and oil rose 1.5% following two days of losses.

Markets reacted on 10 October after Donald Trump said he would impose an additional 100% tariff on all Chinese goods from 1 November, and limit US software exports.

What did Donald Trump assure?

In a post on Truth Social, Donald Trump said, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it.”

Further, in an interview with Fox News over the weekend, US Vice President JD Vance said they will negotiate if China is “willing to be reasonable,” but he felt that the US has “far more cards” if Beijing does not come to the table.

China last week announced curbs on the export of rare earths.

Markets update: How have goal markets reacted?

Australian stocks opened lower while futures for Hong Kong fell. Japan’s markets are closed for a holiday.

The report noted that big downward moves in risky assets have been a rarity of late, which may itself be a factor in the jarring reaction to trade tensions. Since the tariff-fueled meltdown in April, the S&P 500 gauge is trading near one of its highest valuations in 25 years, leaving a thin cushion for bad news.

“It doesn’t look like a replay of April, rather more like a back-and-forth pre-trade negotiation phase before the November deadline of the US-China truce. Markets are pricing in to a certain degree of overselling on Friday, so retrieving from the low,” Anna Wu, a cross-asset strategist at Van Eck Associates Corp, told Bloomberg.

Are Chinese equities performing well?

The report further noted that among markets, Chinese equities have been one of the world’s best performers. Hong Kong’s Hang Seng Index has climbed 31% in 2025. Alibaba Group surged more than 100%, and Tencent Holdings almost 60%.

China, for its part, has also urged further negotiations to resolve outstanding trade issues. Donald Trump and Chinese President Xi Jinping are due to meet later this month.

Hao Zhou, chief economist at Guotai Junan Hong Kong, told the publication that the uncertainty is a factor. “I expect China’s markets to fall initially and then rebound with caution. There are a lot of questions left unanswered,” he said.

Some of the main moves in markets:

Stocks

• S&P 500 futures rose 0.9% as of 8:14 a.m. Tokyo time
• Hang Seng futures fell 5%
• Australia’s S&P/ASX 200 fell 0.3%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro fell 0.1% to $1.1604
• The Japanese yen fell 0.5% to 151.93 per dollar
• The offshore yuan was little changed at 7.1391 per dollar

Cryptocurrencies

• Bitcoin was little changed at $114,994.73
• Ether fell 0.2% to $4,132.31

Commodities

• West Texas Intermediate crude rose 0.9% to $59.45 a barrel
• Spot gold rose 0.7% to $4,045.46 an ounce

(With inputs from Bloomberg)