FOX Business’ Deirdre Bolton discusses the latest on China trade talks and negotiations.
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The deal, which has been agreed to in principle and will take three to five weeks to write, includes China agreeing to raise its agricultural purchases to between $40 billion and $50 billion from $8 billion to $16 billion, in addition to making reforms on intellectual property and financial services. The U.S. will not be raising tariffs from 25 percent to 30 percent on Oct. 15. A decision has not yet been made on the tariff increase scheduled for Dec. 15.
A comprehensive trade deal will have two or three phases, according to Trump. China’s trade team is calling the agreement a “pause” in the trade war, and not a deal.
The Dow Jones Industrial Average was up as much as 517 points in the moments following the announcement before finishing higher by 319 points, or 1.2 percent. The S&P 500 and Nasdaq closed up 1.1 percent and 1.3 percent respectively.
The October reading of the University of Michigan Consumer Sentiment released Friday morning hit a three-month high of 96, up from 93.2 the prior month.
In stock news, trade-sensitive names were charging higher.
Ticker Security Last Change Change % CAT CATERPILLAR INC. 128.40 +5.71 +4.65% DE DEERE & COMPANY 170.95 +3.15 +1.88% AMD ADVANCED MICRO DEVICES INC. 29.75 +1.37 +4.83% INTC INTEL CORPORATION 52.09 +0.98 +1.92%