By CCN.com: The Dow and broader U.S. stock market erased early losses Wednesday amid reports that the Trump administration was planning to send an envoy to Beijing to resume high-stakes trade negotiations.
All of Wall Street’s major indexes turned positive in afternoon trading, erasing a volatile pre-market for Dow futures. The Dow Jones Industrial Average gained 115.97 points, or 0.5%, to 25,648.02. The blue-chip index was down by as much as 91 points earlier in the day.
The broad S&P 500 Index of large-cap stocks climbed 0.6% to close at 2,850.96. Most of the 11 primary sectors reported gains, though communication services and information technology were by far the best performers. The sectors rose by at least 1% on Wednesday.
Surging technology shares lifted the Nasdaq Composite Index to higher ground. The tech-driven average rose 1.1% to finish at 7,822.15.
The United States and China will likely resume trade negotiations soon, according to Treasury Secretary Stephen Mnuchin.
Testifying before a Senate Appropriations subcommittee Wednesday, Mnuchin said the White House will likely send a trade envoy to Beijing to restart negotiations. The news comes less than a day after President Trump’s top trade adviser said talks with China have reached “a complete stalemate.”
The world’s two biggest economies locked horns this week after China announced retaliatory tariffs on $60 billion of additional U.S. imports. The United States responded by preparing a list of additional tariffs targeting $300 billion worth of Chinese goods.
Mnuchin confirmed Wednesday that China did in fact renege on a “historic agreement” that would have been good for both countries. Chinese officials reportedly scrapped a previous agreement to change industrial policy so that American companies operating in China wouldn’t have to hand over intellectual property. A slew of other issues were also identified by U.S. negotiators after China sent over a marked-up copy of the draft text.
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Last modified: September 23, 2020 12:43 PM