Dow Soars After Trump Gushes Praise for ‘Great Leader’ Xi Jinping
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.com: 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.
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.
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
