By CCN.com: The Dow and broader U.S. stock market climbed back into positive territory on Tuesday, as investors held onto hopes that the Trump administration would be able to persuade China into signing a trade agreement before a planned meeting of the heads of state next month.
All of Wall Street’s major indexes rose in afternoon trading, extending a strong pre-market session for Dow futures. The Dow Jones Industrial Average rose 207.06 points, or 0.8%, to 25,532.05. The blue-chip index plunged more than 600 points on Monday, its worst performance of 2019.
The broad S&P 500 Index of large-cap stocks climbed 0.8% to 2,834.41. Ten of 11 primary sectors reported gains, led by information technology.
Surging tech stocks drove the Nasdaq Composite Index to higher ground. The tech-driven gauge rose 1.1% to 7,734.49.
President Trump confirmed Monday that he will be meeting Chinese counterpart Xi Jinping on the sidelines of the Group of 20 summit in Osaka, Japan on June 28-29. That gives negotiators six weeks to iron out a new trade deal before the only planned face-to-face meeting between the heads of state.
The G20 summit isn’t the official deadline for negotiations to conclude, but given how talks have progressed in recent weeks, President Trump’s highly touted signing ceremony is unlikely to occur before then.
When talks were progressing favorably, the Trump administration was eyeing a final trade deal by the end of May or early June at the latest. That’s when President Trump expected to greet Xi for a signing ceremony. But the picture is vastly different today than it was just a few weeks ago.
The United States on Tuesday identified a list of $300 billion worth of Chinese goods for additional tariffs. This came after Beijing presented its own tariff list targeting $60 billion worth of American goods.
President Trump took to Twitter on Tuesday to declare that a trade deal with China can still be passed swiftly. But for it to occur, China must make major concessions.
The latest round of trade hostilities came after China reportedly reneged on a deal, which prompted President Trump to threaten additional tariffs. Those threats became whole on Friday when tariffs on $200 billion worth of Chinese imports were raised to 25% from 10% previously.
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Last modified: July 2, 2020 8:10 PM UTC