Monday, U.S. stock futures jumped as President Trump posted a conciliatory message on Truth Social that appeared to dial back threats of sweeping tariffs on China. Context: markets had sold off Friday after a post that included a 100% tariff threat and Beijing’s rare-earth export curbs raised fears of a disruptive tit‑for‑tat trade war.
Early moves were decisive: Dow Jones futures rose sharply — a premarket move CNBC reported as roughly +351 points — while the S&P 500 and Nasdaq futures climbed as investors chased beaten-up tech names.
Technology led the rally in the session that followed: chip and software names that took big hits on Friday bounced as traders interpreted the post as lowering the odds of immediate, economy‑wide tariffs. The rebound was concentrated — a healthy snapback for the same groups that fell hardest, not a broad‑based risk‑on rotation.
Why it matters: the event shows how sensitive equity flows remain to political signals; a single presidential comment tightened then eased risk premia within 48 hours, creating headline-driven volatility that can amplify institutional position‑sizing and retail flows.
