U.S. stock futures were little changed Monday night, holding steady after a strong rebound session that saw the S&P 500 post its best day since May and the Dow Jones Industrial Average break a five-day losing streak.
Futures Flat After Rally
Dow futures ticked up by just 36 points, while S&P 500 and Nasdaq-100 futures hovered near the flatline. The muted overnight action followed a Monday rally in which the S&P 500 and Dow each gained more than 1%, clawing back much of last week’s losses. The Nasdaq outperformed with a 2% jump, led by tech names including Oracle, AMD, and Nvidia.
The rebound was sparked in part by a Truth Social post from President Donald Trump, who sought to calm investor nerves over escalating trade tensions with China, writing: "Don’t worry about China, it will all be fine."
Trade Tensions Still Loom
Despite the bounce, analysts warn that U.S.-China trade policy remains a key driver of market volatility. Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, noted that hardened positions on both sides could keep volatility elevated into month-end.
She added that past negotiations between Trump and Chinese President Xi Jinping often followed a pattern of escalation and tactical truces, with potential compromises involving rare earth minerals and shipping fees.
Earnings Season in Focus
Investors are now turning their attention to third-quarter earnings, with major banks including JPMorgan Chase and Goldman Sachs set to report Tuesday. Strong results could help sustain momentum after last week’s turbulence.
Bull Market Peak Pushed Out?
Some strategists see silver linings in recent volatility. Doug Ramsey, chief investment officer at the Leuthold Group, suggested that Friday’s sharp sell-off may have delayed the eventual bull market peak.
"If this cycle is fated to end with anything resembling a traditional topping process, then the eventual bull market peak has been pushed out at least a couple more months," Ramsey wrote to clients. Still, he flagged troubling signals, including the underperformance of cyclical stocks relative to defensive names.
Goldman Sachs Expands Into Venture Capital
In corporate news, Goldman Sachs announced it will acquire Industry Ventures, a venture capital firm with $7 billion in assets under supervision. The deal includes $665 million in cash and up to $300 million in performance-based payments through 2030.
Goldman CEO David Solomon said the acquisition will expand opportunities for clients to access high-growth companies and sectors, complementing the bank’s existing investment franchises.
The Bottom Line
Markets may have staged their best rebound in months, but trade tensions, earnings season, and shifting sector dynamics remain front and center. With futures flat after Monday’s rally, investors are bracing for more twists as the quarter unfolds.