US stocks surge on optimism about deal to end China trade war, after Trump suggests he might let tariff deadline ‘slide’
- The S&P 500 was up 1.3 per cent, while the wave of buying drove a 372-point gain for the Dow Jones Industrial Average, ending its four-day run of losses
US stocks marched higher on Tuesday amid renewed optimism over the potential for a trade deal between the US and China.
Technology, financial and health care stocks powered much of the rally, which gave the benchmark S&P 500 index its biggest gain this month and capped a three-day winning streak. The wave of buying also drove a 372-point gain for the Dow Jones Industrial Average, ending the average’s four-day run of losses.
US President Donald Trump said Tuesday that he might let a March 2 deadline slide in trade talks with China if the two countries get close to a deal. Trump said he’s not inclined to extend the deadline, but he might let it “slide for a little while” if talks go well.
Earlier, the White House had called March 2 a “hard deadline.”
Both nations are trying to reach a deal before March 1. That’s when additional tariffs will kick in, escalating the conflict and further hurting companies and consumers with higher prices on materials and products.