US markets update: futures jumped in early Asia trading after President Trump signaled openness to a deal with China

US markets update: futures jumped in early Asia trading after President Trump signaled openness to a deal with China

US markets saw a significant boost in early Asia trading on September 12, 2025, following President Donald Trump's suggestion of openness to a deal with China. The news came as a surprise to investors who had been bracing for potential escalation in the US-China trade war.

The President's remarks were made in the context of ongoing budget negotiations and the potential extension of Affordable Care Act (ACA) subsidies, which are a major source of revenue for some insurers, including Oscar Health. The stock of Oscar Health jumped by 9.1% in after-hours trading after the President's comments .

Trump's comments on extending ACA subsidies were seen as a potential breakthrough in the ongoing government shutdown negotiations. The President stated, "If we made the right deal, I’d make a deal," when asked if he would be willing to make a deal on the subsidies . This shift in stance from Trump could potentially pave the way for a resolution to the budget impasse and a deal on the ACA subsidies.

The market's positive reaction to Trump's comments was likely driven by the hope that a deal with China could alleviate some of the economic tensions that have been building between the two countries. In recent weeks, China has taken several actions that have heightened trade tensions, including expanding its export controls on rare earth elements and launching antitrust investigations into US chip companies like Qualcomm and Nvidia .

Despite the positive market reaction, it is important to note that the President's comments were made in the context of ongoing budget negotiations and do not necessarily indicate a concrete agreement with China. The market's optimism may be tempered by the uncertainty surrounding the potential outcomes of these negotiations and the broader geopolitical tensions between the US and China.

In conclusion, the early Asia trading session saw a significant jump in futures markets, driven by President Trump's suggestion of openness to a deal with China. The President's comments on extending ACA subsidies were seen as a potential breakthrough in budget negotiations, and the market's optimism was likely driven by the hope that a deal with China could alleviate some of the economic tensions between the two countries. However, the uncertainty surrounding the potential outcomes of these negotiations and the broader geopolitical tensions between the US and China means that the market's optimism may be tempered.