Dow stages powerful U-turn as stock market reevaluates Trump's tariff threats

The Dow Jones Industrial Average Monday afternoon was mounting a powerful rebound from steep early losses on reports that a delegation from China will indeed proceed with trade negotiations with the U.S. this week, despite threats from President Donald Trump. The Dow DJIA, -0.25% most recently, was down 41 points, or 0.2%, at 26,465, but it had been down by as many as 471.95 points at 26,033.95, in an apparent response to a pair of tweets by Trump, indicating his intention to raise tariffs on China goods to 25% from 10%, raising questions about a productive, near-term resolution on trade negotiations between the U.S. and China. Citing sources familiar, CNBC on Monday afternoon said a delegation would be coming to the U.S., but said it was still unclear if Beijing’s chief trade negotiator Liu He will attend the gathering. The S&P 500 index SPX, -0.45% also was off its worst level, down 0.3% lower at 2,936, off an intraday low of 2,898, while the Nasdaq Composite Index COMP, -0.50% retreated 0.4% at 8,134, but had been down at 7,981, briefly below a psychologically important level at 8,000. Meanwhile, a index of small-capitalization stocks, the Russell 2000 index RUT, +0.06% was trading in positive territory after suffering its own sharp decline early Monday.

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