US stocks finished higher on Monday, with the performance of markets benefiting mightily from President Donald Trump and Chinese President Xi Jinping’s move to adopt a temporary truce in their trade battle.
The surge on Wall Street comes on the heels of a pact between the US and China at the G20 summit that agrees to a 90-day détente on trade tariffs.
By the closing bell, the Dow Jones Industrial Average Index had jumped 288 points to hit 25,826, pushed up by Boeing, Nike, Apple and Caterpillar.
Carmakers also gained traction in the wake of President Trump’s innuendo this morning that China agreed to reduce its tariffs on auto imports. General Motors added 1.4% by the close to $38.45 while Ford rose 2% to $9.60.
The tech-laden Nasdaq also moved upwards, adding 30 points to reach 2,790, on the back of gains from Wynn Resorts Ltd, Incyte, MercadoLibre and Amazon.com.
Elsewhere, the S&P 500 popped by 30 points to end the day at 2,790 while the Russell 2000 index of small-cap stocks climbed by 14 points to finish at 1,547. Oil prices also finished 4% higher, with West Texas Intermediate crude finishing at $52.95 per barrel, helped by optimism ahead of an OPEC meeting.
In Canada, Toronto’s TSX climbed by 64 points to 15,261, buoyed by a jump in energy stocks.
2:20PM: Dow rallies in midafternoon trading after Trump and Xi ease US-China trade battle turmoil
US stocks rallied Monday after President Donald Trump and Chinese President Xi Jinping agreed to a truce in their trade tariff battle.
At a dinner at the G20 summit in Argentina on Saturday, the leaders moved to postpone the slapping of additional tariffs on each other’s goods for 90 days to allow trade talks to proceed. For now, the US will keep tariffs on more than $200 blllion worth of Chinese goods at 10%.
In midafternoon trading, the Dow Jones Industrial Average climbed 215.20 points to 25,753.66.
Nike was the biggest winner among the blue chips, climbing 3.9% to $78.04. Boeing Co (NYSE:BA) rose 3.2% to $357.80 and Caterpillar Inc (NYSE:CAT) advanced 2.4% to $138.96 as the exporters benefited from the easing of trade tensions.
Verizon Communications Inc (NYSE:VZ) was the biggest loser among the 30 Dow companies, dropping 3.8% to $58.03.
The tech-laden Nasdaq rose 75.30 to 7,405.83. Apple Inc (NASDAQ:AAPL) increased 2.1% to $182.32.
The New York Stock Exchange and the Nasdaq will be closed Wednesday to mark the death of President George H.W. Bush
The S&P 500 pushed higher, adding 21 points to 2,781.78. The broader-based index led higher by Advanced Micro Devices Inc (NASDAQ:AMD) and Wynn Resorts Ltd (NASDAQ:WYNN).
In Canada, Toronto’s TSX was little changed at 15,206.09. The Russell 2000 index of small-cap stocks added 8.36 points to 1,541.63.
10:00 AM: Dow climbs by more than 400 points after Trump and Xi reach truce in US-China trade battle
US stocks climbed sharply higher at the open on Monday in the wake of President Donald Trump and Chinese President Xi Jinping agreeing to a temporary truce in their trade tariff battle.
At a dinner at the G20 summit in Argentina on Saturday, the pair of leaders moved to postpone the slapping of additional tariffs on each other’s goods for 90 days to allow their trade talks to progress. At the moment, the US will keep tariffs on more than $200bn worth of Chinese goods at 10%.
The move bolstered market sentiment, which has been held back by concerns about US-China trade relations for much of the year.
Early in the session, the Dow Jones Industrial Average index climbed by more than 400 points to hit 25,946, as Boeing, Caterpillar, DowDuPont, Nike and United Technologies advanced by more than 3%.
The S&P 500 also pushed higher to add 28 points and hit 2,788, pushed up by Wynn Resorts, Advanced Micro Devices, Devon Energy and Newfield Exploration Co.
The tech-laden Nasdaq also headed north, climbing by 93 points to 7,423 on the back of a 9.4% return from Wynn Resorts as well as gains from Incyte Corp, NVIDIA Corp, JD.com and Amazon.com
Up in Canada, Toronto’s TSX popped by 141 points to 15,339, moving in parallel with US indices, while the Russell 2000 index of small-cap stocks added 16.9 points to reach 1,550.
7:25 AM: US stock futures soar after Trump-Xi meeting ends with China trade deal
US stock futures soared Monday morning after President Donald Trump and Chinese President Xi Jinping agreed to hold off on new tariffs.
Saturday’s working dinner between President Donald Trump and Chinese President Xi Jinping at the G20 summit in Buenos Aires was a “highly successful meeting,” according to a statement released by the White House.
President Trump agreed to leave the US tariffs on $200 billion worth of Chinese goods at 10%, effective January 1, 2019. The two leaders have agreed to begin negotiations on reforms and set a 90-day deadline.
Meanwhile, the New York Stock Exchange and the Nasdaq plan to close Wednesday in honor of the late US President George H.W. Bush. The NYSE will observe a moment of silence Monday.
The Dow Futures were up 440 points, or 1.72% to 25,979.
The S&P Futures were up 39.25 points, or 1.42% to 2,797.50. Strong gains at Monday's open are expected to add to the S&P 500's best week in seven years, say market analysts.
In keeping with the positive market sentiment, Nasdaq Futures also climbed 156.25 points, or 2.25% to 7,105.75.
Oil prices also surged 5% after the US and China agreed to the 90-day truce in a trade dispute. The agreement came ahead of this week's OPEC meeting, which is expected to cut supply.
Meanwhile, stocks in Asia also saw gains Monday after Trump and Xi Jagreed to a temporary trade truce. The mainland Chinese markets, closely watched as a result of Beijing's ongoing trade spat with Washington, saw the Shanghai composite gain 2.57% to close at around 2,654.80.