Dow jumps as President Trump is set to meet Chinese officials
The US stock market jumped higher Thursday, as President Donald Trump is due to meet Chinese Vice Premier Liu He.
Trade negotiations between the United States and China are resuming Thursday for the first time since July. Trump called it a “big day” for the negotiations in a tweet, adding “they want to make a deal, but do I?”
Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House.
— Donald J. Trump (@realDonaldTrump) October 10, 2019
Trump also announced he would meet with Liu at the White House on Friday.
Stocks had started the session more or less flat, but a rally kicked off following the tweet. The Dow was last up some 135 points, or 0.4%, having rallied nearly 260 points at its peak.
The S&P 500 was up 0.6%, while the Nasdaq Composite rose 0.4%.
“The market is rallying today because a meeting is taking place that we thought was taking place until we thought it wasn’t taking place,” said JJ Kinahan, chief strategist at TD Ameritrade. “Its like a high school cafeteria.”
Indeed, the trade negotiations come amid an onslaught of headlines and developments in US-China relations this week.
The US blacklisted 28 Chinese organizations over their alleged involvement in human rights violations. On Wednesday, a Reuters report said Chinese official weren’t optimistic about progress in the talks because the US blacklisting Chinese organizations hurt Beijing’s goodwill.
A Bloomberg report Wednesday meanwhile fueled hopes that a partial trade could be reached.