Dow and S&P 500 rise on hopes of US-China trade deal

“Stocks rose on Tuesday in choppy trading as investors hoped the U.S. and China will strike a deal on trade,” Fred Imbert reports for CNBC. “The Dow Jones Industrial Average traded 103 points higher, while the S&P 500 gained 0.3 percent. The Nasdaq Composite traded just above the flatline.”
“The indexes rose after National Economic Council Director Larry Kudlow said the White House was having ‘a lot of communication with the Chinese government at all levels’ ahead of a meeting between President Donald Trump and his Chinese counterpart, Xi Jinping,” Imbert reports. “‘The whole year comes down to the next few weeks,’ said Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management. ‘Most of what’s happening is geopolitics-related. If we can get clarity on any of those things (tariffs, Brexit, the Italian budget), especially tariffs, that would be positive for the market.'”
“Kudlow’s comments came after Trump told The Wall Street Journal that it was ‘highly unlikely’ that the U.S. would delay from increasing tariffs on $200 billion in Chinese goods to 25 percent. Trump went onto suggest that a 10 percent tariff on laptops and iPhones imported from China could be imposed. Shares of Apple dropped 0.6 percent while steel stocks fell broadly on Trump’s comments,” Imbert reports. “The moves on Tuesday come after Wall Street finished Monday’s session sharply higher, with the Dow Jones industrial average closing more than 350 points higher. The S&P 500 also rose more than 1 percent.”
Read more in the full article here.
MacDailyNews Take: Hopefully, President Trump’s meetings with Chinese President Xi Jinping at the G20 summit go well!
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
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