The Dow surged more than 300 points because Wall Street is buying the rumor of U.S. China trade talks. But will the market sell the news? | Source: NICHOLAS KAMM / AFP (i), REUTERS / Andrew Kelly (ii). Image Edited by CCN.
The Dow and broader U.S. stock market shot higher on Thursday, as investors bought into the rumor that the United States and China will resume trade talks shortly.
Dow Surges; S&P 500, Nasdaq Follow
All of Wall Street’s major indexes reported big gains, mirroring a strong pre-market for Dow futures. The Dow Jones Industrial Average led the market higher, surging 326.15 points, or 1.3%, to 26,362.25.
Dow Jones Industrial Average surges more than 300 points on Thursday, but how long can the rally continue? | Source: Yahoo Finance.
The broad S&P 500 Index of large-cap stocks rallied 1.3% to 2,924.58, with ten of 11 sectors reporting gains. Technology, industrials, and communication services all outperformed the benchmark.
The technology-laden Nasdaq Composite jumped 1.5% to close at 7,973.39.
President Trump will likely use the China trade impasse to bolster his re-election bid in 2020. | Source: AP Photo / Markus Schreiber
Equity markets were bolstered by news that China’s Commerce Ministry was in talks with U.S. officials to resume trade talks as early as September. China’s Foreign Ministry later said it was “not aware” of such conversations.
Regardless of whether both sides return to the negotiating table, a trade deal is highly unlikely anytime soon. With the U.S. economy hanging on for dear life, President Trump will use the impasse to bolster his re-election bid.
Trump has simultaneously claimed that the U.S. economy is the strongest in history and that we need additional rate cuts (with a side