Stock futures are soaring this morning after President Donald Trump appeared to soften his stance on trade negotiations with China; gold futures are at fresh highs as investors continue to seek out the safe-haven asset amid market volatility; JPMorgan Chase (JPM) said it will invest $10 billion in critical U.S. industries; and mining stocks USA Rare Earth (USAR) and MP Materials (MP) surged after Trump’s remarks on trade with China. Here’s what you need to know today.
1. Stock Futures Rebound as Trump Reassures on Trade with China
Stock futures are surging after President Donald Trump said “it will all be fine” with China, a comment that eased the concerns that followed his announcement Friday that higher tariffs would be imposed on Chinese imports. The president’s announcements on Friday spurred a selloff that sent major stock indexes into negative territory for the week. Futures tied to the Dow Jones Industrial Average were up 0.7% recently, while those linked to the benchmark S&P 500 and the tech-heavy Nasdaq jumped 1.1% and 1.6%, respectively. Investors this week will be keeping a close eye on big bank earnings as the government shutdown enters its 13th day. While the stock market is open for trading today, bond markets and banks are closed for the Columbus Day holiday.
2. Gold Hits New Record; Bitcoin Rebounds From Selloff
Gold futures hit $4,100 an ounce for the first time Monday as investors continue pouring into the safe haven asset amid market volatility and economic uncertainty. Silver futures also hit a record high, jumping 5% to near $50 an ounce. Bitcoin (BTCUSD) rebounded after plunging on Friday, but remains well below the record high of about $125,000 set last week. The digital currency was at $114,000 recently, after sliding as low as $107,000 over the weekend. Several crypto-related stocks—including Strategy (MSTR), Coinbase (COIN), MARA Holdings (MARA) and Riot Platforms (RIOT)—were gaining ground in premarket trading.
3. Trump Says ‘It Will All Be Fine’ With China after Tariffs Threat
President Donald Trump said, “The U.S.A. wants to help China, not hurt it!!!,” in a social media post on Sunday. “Don’t worry about China, it will all be fine!,” Trump said, just two days after announcing the U.S. would raise tariffs on Chinese imports by 100%. The president’s threats on Friday followed China’s move earlier in the week to tighten its export controls on rare earth minerals, which are needed for batteries, electronics and other high-tech uses. Earlier on Sunday, China had said it was “not afraid” of a trade war with the U.S.
4. JPMorgan Announces $10 Billion Investment in Critical Industries
JPMorgan Chase (JPM) said it will invest $10 billion in industries critical for U.S. national security, part of a broader initiative that calls for $1.5 trillion in investments over 10 years. JPMorgan said the investments would come in areas that include advanced manufacturing, defense and aerospace, energy independence and frontier technologies. Investments will be made in critical minerals, pharmaceuticals, artificial intelligence and cybersecurity. The world’s largest bank by market capitalization is scheduled to report quarterly earnings tomorrow morning before markets open. JPMorgan shares were up 1% in premarket trading.
5. Mining Company Stocks Jump on Trump Trade Comments
Shares of several mining companies are soaring this morning after President Trump’s latest comments on trade with China. USA Rare Earth (USAR) shares were up 15% in recent premarket trading, while MP Materials (MP) added 8%. Lithium miners Albemarle (ALB) and Lithium Americas (LAC) each gained 3% ahead of the opening bell.
CORRECTION: This article has been updated to remove a reference to Treasury yields, as bond market trading is closed for the Columbus Day holiday.
