Dow rises 350 points after China says it wants trade talks
Stocks jumped on Thursday after China said it wished to resolve its protracted trade dispute with the world’s largest economy with a “calm” attitude.
By midday, the Dow Jones Industrial Average was trading 350 points higher, or 1.4 percent. The S&P 500 gained 1.3 percent, while the Nasdaq Composite advanced 1.5 percent.
“There’s a talk scheduled for today at a different level,” President Donald Trump said in an interview with Fox News Radio, without elaborating.
“Let’s see what the end product is; that’s what you have to judge it by,” Trump said.
When asked about its ongoing trade war with the U.S., China’s commerce ministry said Thursday that it was opposed to escalating trade tensions, hinting Chinese authorities will not retaliate against the latest round of U.S. tariffs.
The monthslong trade war escalated earlier this month when China unveiled new levies on $75 billion worth of U.S. products. President Donald Trump then announced he would raise tariffs on a slew of Chinese goods starting in September.
That escalation sent the major averages lower this month, with the Dow and S&P 500 both down around 3 percent and the Nasdaq declining by nearly 4 percent.
A total of four inversions of the yield curve has worried investors this month, raising fears of a recession. The closely-watched spread between the 10-year Treasury yield and the 2-year rate is trading around its lowest level since 2007. Meanwhile, the rate on the benchmark 30-year Treasury bond sank to an all-time low.