Markets Rebound After Friday's Tariff Scare

U.S. stock futures are sharply higher in premarket trading, rebounding from Friday’s sell-off after President Donald Trump said trade relations with China “will all be fine.” The moves come after Trump’s Truth Social post on Sunday suggested to investors the President may not follow through on his threat to post a “massive increase of tariffs” on China.

That comment on Friday brought the U.S. trade war with China back in focus, and sent stocks tumbling in a rout that wiped out $2 trillion in market value. With no economic data on the Columbus day holiday, investor focus will be on trade rhetoric and the continuation of the Government shutdown.

Snapshot (as of 7 AM ET)

• Oil (/CL) – Oil prices rebounded over 0.7% near $60 a barrel, recovering from sharp losses in the Friday’s session as investors grew cautiously optimistic that potential talks between President Trump and President Xi could ease tensions between the world’s two largest economies and oil consumers. Crude hit 5-Month lows on Friday after China expanded its export controls on rare earths, a move widely interpreted as a counter to Washington’s trade measures.
• Gold (/GC) – Gold prices are up over 2% near $4100 and scaled to another record high as investors revved up their safe-haven bets after U.S. President Donald Trump renewed tariff threats against China, while expectations of U.S. interest rate cuts added to the metal’s allure.
• Bitcoin (/BTC) – The Crypto Future is down over 1.5% near 115,000 in premarket trading after hitting all-time highs last week.
• VIX – The CBOE Volatility Index was up 31.8% on Friday and settled at 21.66 as stocks fell sharply. The VIX closed at the highest level in 5 months on Friday but is down 4% near 20 on the rebound in stocks.
• U.S. Dollar (/DX) – The dollar is up 0.2% to 99.19.

Biggest Premarket Movers (Mark % Change as of 7 AM ET)

1. Western Digital (WDC): +5.00%
2. Micron Technology (MU): +4.60%
3. Seagate Technology (STX): +4.40%
4. Fastenal (FAST): -3.78%
5. Regeneron Pharmaceuticals (REGN): -2.24%
6. Las Vegas Sands (LVS): -1.73%

Economic Data

• 12:10PM ET: Fed’s Paulson Speaks

Notable Earnings

• Premarket: FAST
• Postmarket: N/A
• Premarket Tuesday: ACI, BCE, BLK, C, DPZ, ERIC, GS, JNJ, JPM, WFC
• Postmarket Tuesday: HWC

Upgrades/Downgrades

• KGI Securities upgrades Advance Micro Devices (AMD) to Outperform from Neutral
• BTIG upgrades Palo Alto Networks (PANW) to Buy from Neutral
• BofA upgrades Applied Materials (AMAT) to Buy from Neutral
• Goldman Sachs downgrades PayPal (PYPL) to Sell from Neutral
• BofA downgrades Intel (INTC) to Underperform from Neutral

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