Wall Street scored its best day in 2-1/2 years and the Dow Jones Industrial Average saw its third-biggest point gain ever on Monday, as trade war fears eased on reports the United States and China are willing to renegotiate tariffs and trade imbalances.
NEW YORK (Reuters) – Wall Street scored its best day in 2-1/2 years and the Dow Jones Industrial Average saw its third-biggest point gain ever on Monday, as trade war fears eased on reports the United States and China are willing to renegotiate tariffs and trade imbalances.
The rally, fueled by technology stocks, came on the heels of the indexes’ worst weekly performance since January 2016, the S&P 500’s. SPX gain making up for less than half of the prior week’s near 6 percent loss.
“We saw a really good rally because of potential talks with China,” said Dennis Dick, Head of Markets Structure, Proprietary Trader at Bright Trading LLC in Las Vegas. “People are taking advantage of the huge dip last week.”
“I don’t think you’re out of the woods yet. There’s political uncertainty,” Dick added.
Last week’s drop was fueled in part by tensions surrounding U. S. President Donald Trump’s move to levy tariffs on up to $60 billion of Chinese imports, in addition to those imposed on solar panels, steel and aluminum.
But tensions were calmed as Chinese Premier Li Keqiang repeated pledges to maintain trade negotiations and ease access to American businesses.
U. S. Treasury Secretary Steve Mnuchin said on Sunday he believed Washington could reach agreement with China on some issues but tariffs would not be put on hold “unless we have an acceptable agreement that the president signs off on.
