Deal Day. Stocks rallied Friday as the U.S. and China reached an agreement to halt the trade war for now, potentially paving the way to a broader deal in the future. The next round of tariffs against China won’t go into effect, and the two countries expect to sign the deal as soon as next month. Consumer sentiment unexpectedly rebounded in October, while oil prices rose after reported attacks on Iranian crude ships. In today’s After the Bell, we…
look into the latest agreement between the U.S. and China; examine the rising optimism among consumers in October; and wonder where the crude prices might go in the months ahead.
Buy the Rumor, Buy the News
All three major indexes closed with solid gains as a partial trade deal between the U.S. and China is finally happening. The Dow Jones Industrial Average surged 319.92 points, or 1.21%, to close at 26,816.59. The S&P 500 added 32.14 points, or 1.09%, to finish at 2970.27, and the Nasdaq Composite rose 106.26 points, or 1.34%, to close at 8057.04.
Stocks opened higher Friday morning after President Donald Trump said in a tweet that “Good things are happening at China Trade Talk Meeting” and the two countries are sharing “Warmer feelings than in recent past.”
Then, after meeting with China’s lead trade negotiator Liu He in the Oval Office in the afternoon, Trump announced that the two countries have reached a “substantial phase-one deal,” which reportedly addressed intellectual property, financial-services concerns, and China’s purchases of American agricultural products.
Treasury Secretary Steven Mnuchin also announced