The Dow Jones Industrial Average may have limped into the Thursday morning trading session, but it snapped back into recovery mode after President Donald Trump tantalized investors with a tweet previewing the resumption of US-China trade negotiations today.
That tweet sent the markets into a frenzy, and the Dow Jones spiked more than 150 points. At last check, the DJIA traded at 26,487.77 for a gain of 141.76 points or 0.54%.
Trade war bellwether Caterpillar headlined the Dow’s upswing, jumping 2%.
The S&P 500 and Nasdaq secured similar rallies, rising 0.54% to 2,935.15 and 0.57% to 7,948.59.
Stocks roared higher after Trump tweeted that he would meet Chinese Vice Premier Liu He at the White House on Friday.
That tweet included two positive nuggets for investors hopeful that the US and China will strike a limited trade deal before new tariffs kick in on Oct. 15.
First, Trump confirmed that he would personally meet with Liu, China’s top negotiator, which suggests that the White House remains hopeful that the trade talks will produce concrete progress.
Second, Trump revealed that his meeting with Liu would occur on Friday, which seemingly refutes earlier reports that Liu – if not the entire Chinese delegation – might cut the visit short and leave Washington after a single day of negotiations.
However, Trump shrouded the otherwise-bullish tweet in a dash of mystery, including the following cryptic message:
“They want to make a deal, but do I?”
According to an earlier report in the South China Morning Post, Chinese President Xi Jinping did not grant Liu the title of “special envoy” for this round of negotiations, which suggests that the Chinese leader did not give Liu a specific mandate and that Beijing’s expectations for the talks remain low.
The Wall Street Journal had first reported that Chinese officials hoped to arrange a meeting between Liu and Trump.
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Last modified: September 23, 2020 1:07 PM