Traders work on the floor of the New York Stock Exchange on Tuesday. Photo: AP
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https://scmp.com/business/markets/article/2185911/us-stocks-surge-optimism-about-deal-end-china-trade-war-after-trump Markets
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
Traders work on the floor of the New York Stock Exchange on Tuesday. Photo: AP
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.
“Any deal would help alleviate some of the uncertainty,” said Karyn Cavanaugh, senior markets strategist at Voya Investment Management. “The GDP hasn’t been dinged that much from the trade tariffs, it’s really been the uncertainty. It’s spilling over into business plans and that’s a hurdle for growth.”
The S&P 500 index gained 34.93 points, or 1.3 per cent, to 2,744.73. The Dow climbed 372.65 points, or 1.5 per cent, to 25,425.76. The index was briefly up by more than 400 points.
The Nasdaq composite rose 106.71 points, or 1.5 per cent, to 7,414.62. The Russell 2000 index of smaller-company stocks, which has been leading the other indexes this year, added 19.25 points, or 1.3 per cent, to 1,538.23.