A U.S. holiday today for Columbus Day — U.S. equity futures rebounded as President Trump signalled openness to a deal with China, easing fears after last week’s tariff threats. S&P 500 futures rose 1.3% and Nasdaq 100 gained 1.8%, while Treasuries dipped and oil added 1.5%. Gold hit a new high, and silver spiked on a short squeeze. European stocks looked firmer, though Asia lagged — China fell around 1% and Hong Kong tumbled on renewed trade jitters.
Trade tensions came back into focus, with investors weighing another negotiating cycle against the risk of escalation ahead of November’s tariff deadline. Friday’s sell-off has partly reversed after Trump’s 100% tariff threat followed Beijing’s rare earth export curbs, but both sides have since softened tone — with the U.S. hinting at compromise and China urging dialogue. After a long bull run, stock valuations leave little room for error, and the Fed will be watching for signs that trade volatility starts to hit growth or inflation expectations.
Meanwhile, in Gaza, Hamas released the first seven surviving Israeli hostages to the Red Cross under a U.S.-brokered ceasefire deal, marking a tentative breakthrough after more than two years of conflict. The exchange has raised hopes for a broader truce, though tensions remain high over disarmament and implementation. In Europe, Macron reshuffled his cabinet as pressure mounts to pass a new budget.
