It’s another trading session for the record books. The Dow Jones Industrial Average fought its way back from a 510.20 intraday point drop to end the session over 230 points higher on eased concern over a U.S.-China trade war. This is just the third time in history the Dow has seen such a rebound, as tracked by our partners at the WSJ Markets Data Group. In total rallying about 700 points during the session.
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“It is a very impressive reversal ... a lot of technicians are going to comment very positively on today’s action” Tim Anderson, managing director of TJM Investments, tells FOX Business. “What some people are realizing is the U.S. is negotiating with China. It is not going to be a trade war where there will be no communication between the two,” he noted.
DJIA: +230 to 24263
S&P 500: +34.23 to 2644
Nasdaq Composite: +100 to 7042
Stocks first got whacked at the open after China rolled out plans to levy additional tariffs on 106 products including soybeans, whiskey and tobacco, to name a few.
The selling abated mid-morning after President Donald Trump’s top economic adviser, Larry Kudlow, attempted to set the record straight.
“Blame China, not President Trump,” Kudlow told FOX Business’ Stuart Varney during an interview on Wednesday. “Because they’ve been going on for many years. Trump is really the first president to fight back.”
Despite fears of a trade war, Boeing, the largest exporter to China, remains optimistic telling FOX Business on Wednesday there is room for negotiation between the two countries.
Along with Kudlow’s comments, investors also returned their focus to a batch of positive economic and sentiment data points including what is being described as a “rip roaring” job market by Mark Zandi, chief economist of Moody’s Analytics, in describing the latest ADP jobs report.
Private U.S. companies added a surprisingly strong 241,000 jobs in March, the fifth straight month of employment gains exceeding 200,000, ADP Research Institute reported. Economists view the report as a good barometer heading into Friday’s monthly employment report from the Labor Department.
Additionally the nation’s top chief financial officers are bullish about the here and now as well as the future. According to Deloitte’s quarterly CFO Signals Survey, which tracks the thinking and actions of these CFOs, 90% rated the current conditions as good, a new survey high. This compares with 74% in the previous, fourth quarter. The survey also found that 59% expect better conditions in a year.