U.S. stock index futures indicated a positive open on Monday, hinting at a continuation of last week’s upward momentum after investors received a potentially market-friendly trade development from Washington.
According to a The Wall Street Journal report, the Trump administration has been softening its tariff policy, quietly granting exemptions to some products that had previously been targeted under its trade strategy.
The report noted that President Donald Trump has “exempted dozens of products from his ‘reciprocal tariffs’ in recent weeks and offered to carve out hundreds more goods when countries strike trade deals with the U.S.”
This news is helping lift sentiment in early trading, though investors are likely to remain somewhat cautious with the upcoming release of the consumer price index later this week, a key inflation report that could shape expectations for future interest rate moves.
The Bureau of Labor Statistics confirmed that the CPI report will still be published Friday despite the ongoing government shutdown. The data is necessary to ensure that the Social Security Administration meets legal payment deadlines.
Earnings season is also gaining momentum, with major names like The Coca-Cola Company (NYSE:KO), General Motors (NYSE:GM), Netflix (NASDAQ:NFLX), AT&T (NYSE:T), IBM (NYSE:IBM), Tesla (NASDAQ:TSLA), and Intel (NASDAQ:INTC) scheduled to report results.
Friday’s trading session saw stocks shrug off a shaky start to end in positive territory. The Dow Jones Industrial Average gained 238.37 points, or 0.5%, to close at 46,190.61. The Nasdaq Composite added 117.44 points, or 0.5%, to 22,679.97, and the S&P 500 advanced 34.94 points, or 0.5%, to 6,664.01.
For the week, the Nasdaq jumped 2.1%, while the S&P 500 and Dow posted gains of 1.7% and 1.6%, respectively, bouncing back from Thursday’s declines that were triggered by concerns over bad loans in the banking sector.
Several financial names led the rebound, with Jefferies Financial Group (NYSE:JEF) and Zions Bancorporation (NASDAQ:ZION) recovering strongly. Additional support came from Truist Financial (NYSE:TFC), Fifth Third Bancorp (NASDAQ:FITB) and Huntington Bancshares (NASDAQ:HBAN), which beat earnings forecasts.
Trade optimism added fuel to the rally. In an interview with Fox Business, Trump said the tariffs threatened on Chinese imports are “probably not [sustainable]” but emphasized “they forced me to do that.” He also reaffirmed plans to meet with Chinese President Xi Jinping later this month in South Korea, which helped ease investor concerns.
Most sectors posted muted moves to close out the week, but gold miners took a sharp hit. The NYSE Arca Gold Bugs Index tumbled 7.4%, reversing from record highs as gold prices retreated sharply after a strong rally.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.