Dow Surges as Wall Street Feasts on Trump’s China Tease

Posted in: Markets
Published:
October 10, 2019 2:20 PM UTC

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.

Dow Blasts Higher in Response to Trump Tweet

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%.

The Dow spiked after Trump revealed he would meet with Chinese Vice Premier Liu He. | Source: Yahoo Finance

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.

Trump Will Meet with China’s Top Trade Negotiator

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?”

Liu Will Meet with Trump, But Not as Xi’s Special Envoy

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.

Click here for a live Dow Jones Industrial Average chart

Sam Bourgi edited this article for CCN.com. If you see a breach of our Code of Ethics or Rights and Duties of the Editor or find a factual, spelling, or grammar error, please contact us.

Show comments
Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN.com, where he focuses on financial markets. His work has also been featured on Yahoo Finance and Investing.com. He lives in rural Virginia. Connect with him on LinkedIn or email him directly at josiah.wilmoth(at)ccn.com.