DOW Futures experienced a notable increase after comments made by President Donald Trump over the weekend, which alleviated some concerns regarding a potential resurgence in U.S.-China trade tensions. Trump, who had indicated he could impose significant new tariffs on Beijing, stated he was not aiming to “hurt” China. China’s exports exceeded expectations in September; however, the ongoing trade dispute casts a shadow over the broader economic perspective. Investor demand for safe havens drives gold to a new record high, with oil also experiencing an upward trend.

DOW Futures indicated a significant increase on Monday, as investors observed a potentially more conciliatory stance from President Donald Trump following his earlier threats to impose substantial new tariffs on China. By 03:19, the Dow futures contract had increased by 468 points, representing a 1.0% rise, while S&P 500 futures experienced a jump of 96 points, or 1.5%. Additionally, Nasdaq 100 futures saw a surge of 472 points, equating to a 1.9% gain. The principal indices experienced a significant decline on Friday, influenced by social media communications from Trump that rekindled concerns regarding a potential extensive trade conflict between the two largest global economies. In response to Beijing’s announcement regarding expanded export controls on certain rare earth materials, which are essential across various industries, Trump indicated his intention to impose additional tariffs of 100% on goods imported from China into the U.S. He also cautioned about new U.S. export controls on “any and all critical software” by November 1, and indicated that there was no longer justification for a meeting with Chinese counterpart Xi Jinping at the highly-anticipated summit in South Korea later this month. Nonetheless, the scheduled assembly was not entirely abandoned. Trump’s statements have reignited market apprehensions regarding the potential risks associated with escalating international tariffs, which had remained subdued following a tentative detente between the U.S. and China earlier this year.

However, Trump has apparently taken on a more moderate position, stating over the weekend that all would be well and that Washington was not aiming to “hurt” China. Beijing, for its part, justified its export restrictions on rare earth elements and equipment as a requisite response to perceived U.S. aggression, while refraining from imposing new tariffs on American goods. “This latest dispute could still blow over if cool heads prevail,” analysts noted, adding that the planned meeting between Trump and Xi could provide “an off-ramp.” However, it is evident that there exists a risk that both parties may become entrenched, anticipating that their adversary will capitulate first. China’s economy has demonstrated greater resilience against U.S. tariffs than previously anticipated; however, a more profound discord with the U.S. presents considerable potential risks. On Sunday, the U.S. Trade Representative indicated that Washington had initiated contact with China for a phone call following its announcement regarding rare earths; however, Beijing postponed the discussion. China has criticized the U.S. for what it terms “double standards,” pointing to the actions of the Trump administration in placing certain Chinese companies on a trade blacklist and imposing port fees on vessels associated with China.

Meanwhile, China’s export growth rebounded in September; however, the specter of reignited trade tensions with the U.S. has cast a shadow over the outlook for both job growth and deflation in an economy that is heavily dependent on exporting goods to foreign markets. Exports from the world’s second largest economy experienced an annualized growth rate of 8.3% last month, as per official customs data, significantly surpassing the 6.0% increase anticipated by analysts and markedly improving from August’s 4.4% rise. Analysts noted that this resilience indicates China’s enhanced trade relationships with the global market in the context of U.S. protectionism. China has swiftly adjusted its export markets to reduce dependence on the U.S. following the trade dispute with Washington, a strategy that has contributed to maintaining its target of 5% annual growth. However, the strategy may face scrutiny if Trump proceeds with his proposal for triple-digit tariffs.

Gold prices surged to new record levels on Monday, nearing the $4,100-per-ounce threshold, as escalating U.S.-China trade tensions heightened the demand for safe-haven assets. Spot gold increased by 1.3% to $4,070.29 per ounce at 02:53, following a peak of $4,078.05 earlier in the session. U.S. Gold Futures increased by 1.6%, reaching a price of $4,089.45 per ounce. Silver reached an unprecedented peak, capitalizing on the prevailing trends in precious metals. Bullion prices surged following Trump’s escalation of trade tensions on Friday, creating instability in financial markets and prompting investors to flock to safe-haven assets such as gold. The yellow metal is generally regarded as a safe haven for investment amid periods of economic or political instability. Although Trump’s change in tone has contributed to alleviating certain concerns, traders continue to exercise caution regarding potential erratic policy changes emanating from the White House.

In other markets, oil prices rebounded after declining to five-month lows in the previous session, indicating optimism that the trade tensions between the U.S. and China may ultimately subside. Brent crude futures experienced an increase of 1.6%, reaching $63.72 per barrel by 03:47, while U.S. West Texas Intermediate crude futures also rose by 1.6%, settling at $59.83 a barrel. The contracts experienced a decline of 3.82% and 4.24%, respectively, on Friday, marking their lowest levels since May 7. WTI prices are poised to settle on Tuesday, as a significant portion of the U.S. observes a public holiday on Monday. Analysts indicated that a tenuous ceasefire in Gaza has impacted oil prices, with a potential de-escalation of the conflict likely alleviating concerns regarding supply disruptions across the Middle East. On Monday, the Palestinian militant group Hamas released the initial group of living Israeli hostages, marking the first phase of a U.S.-brokered agreement aimed at concluding years of conflict, according to media reports.