dow jones industrial average, trump-xi mural
A mural entitled is displayed on a wall in Milan, on June 29, 2019 and depicts China’s President Xi Jinping (L) holding an i-Phone smartphone kissing US President Donald Trump holding an Huawei smartphone. (Photo by Miguel MEDINA / AFP) /

By CCN Markets: The Dow soared on Monday after Wall Street seized on new trade war developments that suggested cooler heads would prevail despite several titanic escalations to the US-China tariff conflict.

Dow Rallies 300 Points

All of Wall Street’s major stock indices jumped higher on Monday, despite the fact that early futures trading had pointed to mammoth losses.

The Dow Jones Industrial Average rose 293.39 points or 1.14% to 25,922.29.

dow jones industrial average chart
The Dow spiked 300 points following the opening bell. | Source: Yahoo Finance

The S&P 500 jumped 28.12 points or 0.99% to 2,875.23

The Nasdaq climbed 86.28 points or 1.11% to 7,838.05.

Trump Heaps Praise on Xi Jinping & China

It seems like only yesterday that President Trump was railing against China for retaliating against US tariffs and lambasting Xi Jinping as an “enemy” of the United States. In fact, it was three days ago, and Trump appears to have had a change of heart in the interim.

Writing on Twitter, Trump gushed that Xi is a “great leader” and “representing a great country.” He said that he was “so impressed” that Beijing still desires a “calm” trade war resolution.

“Talks are continuing,” Trump added.

Trump’s softening stance might have something to do with the stock market’s ongoing panic about the trade war.

On Sunday evening, Dow futures plunged nearly 400 points, putting the DJIA at risk of sliding more than 1,000 points in just two trading sessions.

dow jones industrial average chart
Dow futures suffered a serious case of whiplash leading into Monday’s open. | Source: Yahoo Finance

It’s clear that Trump was paying attention because it wasn’t long before he sent out this tweet defending his stock market record.

Then, on Monday morning, Trump told reporters that the US and China had spoken on the phone and that the two economic superpowers would “be getting back to the table” very soon.

“I think they want to do something,” Trump said. “This is a very positive development for the world.”

However, investors have already watched the White House and Beijing make several false starts since negotiations broke down in May.

With new tariffs set to take effect in less than one week, will Trump’s assurances be enough to calm stock market fears?

Click here for a real-time Dow Jones Industrial Average chart.

Featured Image: ‘Smart Love’ by Italian street artist TvBoy

You May Also Like

Spend Your $1,000 Wisely on Cyber Monday. Consider These 4 Stocks

The average consumer will spend $1,000 this holiday season. Don’t be average, consider making your money work for you with these stocks.

Deutsche Bank Reveals the Real Reason Stock Market Is at All-Time Highs (& Why It Can’t Continue)

The US stock market is at all-time highs, but what’s driving this ten-year bull market? It’s stock buybacks, according to Deutsche Bank.

Dow Futures Rocket but Warren Buffett’s $128 Billion Skips Overpriced Market

Dow Jones Industrial Average (DJIA) futures point to new stock market highs, so why is Warren Buffett reluctant to invest?

US Steel (NYSE:X) Needs More Than Trump Tariffs to End 2019 in the Green

US Steel (NYSE:X) rose swiftly after President Donald Trump announced the reimposition of tariffs on imports from Brazil and Argentina.

Growth Recession Chokes India as GDP Tumbles, and No One Seems to Care

India’s GDP growth fell to a six-year low in Q2, but the country’s government is in denial while the economy reels under a recession.

Dow Pops While Trump Trade War Hits Unsettling Milestone

The Dow kicked off December with a recovery, but stock market bulls must wrestle with an unsettling trade war milestone.