Stocks jump on US trade progress at G-7
Stocks gained after President Trump said Monday that talks with Beijing are continuing despite last week’s escalation of the trade war. Over the weekend, Trump reached a “billion-dollar” trade deal with Japan.
|I:DJI||DOW JONES AVERAGES||25844.39||+215.49||+0.84%|
|I:COMP||NASDAQ COMPOSITE INDEX||7826.812868||+75.05||+0.97%|
“Great respect for the fact that President Xi & his Representatives want ‘calm resolution,’” Trump tweeted. “So impressed that they are willing to come out & state the facts so accurately. This is why he is a great leader & representing a great country. Talks are continuing!”
The early gains have helped restore some investor confidence after the Dow Jones Industrial Average plunged by more than 600 points on Friday following both the U.S. and China escalating their more than year-long trade war.
Trump on Friday ordered U.S. companies to start “ looking for an alternative to China” after Beijing announced it would slap tariffs on $75 billion worth of U.S. goods and reinstated taxes on others. Trump responded by hitting Chinese goods with even bigger tariffs.
Some of the trade-sensitive names were rebounding Monday morning. The automaker Ford and the chipmaker AMD were higher after posting respective losses of about 3 percent and 7 percent on Friday.
|F||FORD MOTOR COMPANY||8.86||+0.09||+0.97%|
|AMD||ADVANCED MICRO DEVICES INC.||30.43||+0.89||+3.01%|
On the data front, durable goods orders rose 2.1 percent in July, topping the 1.1 percent advance that was expected.
Gold and West Texas Intermediate crude oil were higher, trading around $1,541 an ounce and $55.10 a barrel, respectively. U.S. Treasurys were also gaining, pushing the 10-year yield down 1.1 basis points at 1.527 percent.
The U.S. open is a sharp reversal from the losses suffered overnight in Asia. Japan’s Nikkei fell 2.17 percent while China’s Shanghai Composite and Hong Kong’s Hang Seng lost 1.91 percent and 1.17 percent, respectively, after Friday’s escalation of the trade war.