Dow Spikes Suddenly as Trump Team Schemes to Salvage China Deal

By CCN: The Dow and broader U.S. stock market erased early losses Wednesday amid reports that the Trump administration was planning to send an envoy to Beijing to resume high-stakes trade negotiations.

Dow Makes Surprise Recovery; S&P 500, Nasdaq Follow

All of Wall Street’s major indexes turned positive in afternoon trading, erasing a volatile pre-market for Dow futures. The Dow Jones Industrial Average gained 115.97 points, or 0.5%, to 25,648.02. The blue-chip index was down by as much as 91 points earlier in the day.

Dow Jones Industrial Average

After a volatile open, the Dow Jones Industrial Average breaks higher as trade-deal optimism builds. | Chart via Yahoo Finance.

The broad S&P 500 Index of large-cap stocks climbed 0.6% to close at 2,850.96. Most of the 11 primary sectors reported gains, though communication services and information technology were by far the best performers. The sectors rose by at least 1% on Wednesday.

Surging technology shares lifted the Nasdaq Composite Index to higher ground. The tech-driven average rose 1.1% to finish at 7,822.15.

Will Trade War Standoff Break Soon? steven mnuchin

Steven Mnuchin revealed that U.S.-China trade negotiations will kick back into gear in the near future. | Source: Shutterstock

The United States and China will likely resume trade negotiations soon, according to Treasury Secretary Stephen Mnuchin.

Testifying before a Senate Appropriations subcommittee Wednesday, Mnuchin said the White House will likely send a trade envoy to Beijing to restart negotiations. The news comes less than a day after President Trump’s top trade adviser said talks with China have reached “a complete stalemate.”

The world’s two biggest economies locked horns this week after China

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