Stocks gained after President Trump said Monday that talks with Beijing are continuing despite last week’s escalation of the trade war. Over the weekend, Trump reached a “billion-dollar” trade deal with Japan.
All three of the major U.S. averages rose 1 percent with the Dow Jones Industrial Average rising over 269 points.
|I:DJI||DOW JONES AVERAGES||35294.76||+382.20||+1.09%|
|I:COMP||NASDAQ COMPOSITE INDEX||14897.33971||+73.91||+0.50%|
“Great respect for the fact that President Xi & his Representatives want ‘calm resolution,’” Trump tweeted. “So impressed that they are willing to come out & state the facts so accurately. This is why he is a great leader & representing a great country. Talks are continuing!"
Monday's action helped restore some investor confidence after the Dow Jones Industrial Average plunged by more than 600 points on Friday following both the U.S. and China escalating their more than year-long trade war.
Trump on Friday ordered U.S. companies to start “ looking for an alternative to China” after Beijing announced it would slap tariffs on $75 billion worth of U.S. goods and reinstated taxes on others. Trump responded by hitting Chinese goods with even bigger tariffs.
Some of the trade-sensitive names were rebounded. The automaker Ford and the chipmaker AMD were higher after posting respective losses of about 3 percent and 7 percent on Friday.
|F||FORD MOTOR CO.||15.70||+0.25||+1.62%|
|AMD||ADVANCED MICRO DEVICES, INC.||112.12||+0.13||+0.12%|
On the data front, durable goods orders rose 2.1 percent in July, topping the 1.1 percent advance that was expected.
Gold and West Texas Intermediate crude oil were higher, trading around $1,541 an ounce and $55.10 a barrel, respectively. U.S. Treasurys were also gaining, pushing the 10-year yield down to around at 1.54 percent.