"Wall Street is bullish on U.S. stocks this morning, with S&P 500 futures strongly up, premarket. Traders seem to think that Trump will eventually be forced to make a trade deal with China that keeps rare earth materials and AI chips flowing between the two. New export data from Beijing shows that Trump's tariffs have, surprisingly, been good for China-its trade with the rest of the world more than offset its losses to the U.S."
"S&P 500 futures are strongly up this morning after the index fell by 2.71% on Friday, when investors reacted with dismay to President Trump's threat to impose a new set of 100% tariffs on China. The reversal in favor of optimism this morning suggests investors now think Trump will eventually chicken out and Washington and Beijing will come to a deal."
"Chinese exports were up 8.3% in September year over year, according to RBC's Peter Schaffrik, an increase from 4.4% the month before. The increase beat analyst expectations. Although China's exports to the U.S. fell by 27% year on year, exports to Europe and Asia rose sharply as other nations took advantage of the U.S.'s withdrawal from the Chinese market. Trade to Africa, for instance, was up a massive 57%."
U.S. equity futures rose strongly after a prior 2.71% drop driven by President Trump's threat of 100% tariffs on China. Traders expect a negotiated deal that preserves flows of rare earth materials and AI chips. China recorded 8.3% year-over-year export growth in September, up from 4.4%, as shipments to Europe, Asia, and Africa rose sharply while exports to the U.S. fell 27%. Imports hit a 17-month high, signaling reinforced global trade links. Tariffs pushed up import prices to the U.S., while export prices from China generally fell amid heavier competition and rising trade volumes.
Read at Fortune
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