(MENAFN – Baystreet.ca)
Stocks recovered the bulk of their earlier losses on Monday as investors bet China and the U.S. will still strike a trade deal despite President Donald Trump’s threat to hike tariffs on Chinese imports over the weekend.
The Dow Jones Industrials made headway back toward breakeven, still falling short 66.47 points to 26,438.48, having forfeited as much as 471 points during the morning session.
Dow-member Disney traded 0.2% higher after falling as much as 1.5%, offsetting some of the decline. McDonald’s and Chevron traded higher as well.
The S&P 500 sank 13.17 points, or 1%, to 2,932.47,
The NASDAQ Composite index tumbled 40.71 points to 8,123.29
The market’s comeback accelerated following media reports that Chinese delegation will, in fact, still travel to the U.S. to continue negotiations this week, according to sources, albeit with a smaller group than originally planned.
Trump said in a tweet Sunday afternoon that the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”
Shares of Apple and Caterpillar were off their worst levels of the session, closing more than 1% lower. Apple fell as much as 3.9% while Caterpillar lost 3.4% at one point.
Prices for the benchmark 10-year U.S. Treasury gained strength, lowering yields to 2.50% from Friday’s 2.53%. Treasury prices and yields move in opposite directions.
Oil prices recovered 89 cents to $62.83 U.S. a barrel.
Gold prices regained 20 cents to $1,281.50 U.S. an ounce.
Dow Stages Stunning Comeback