U.S. markets racked up steep declines Monday before clawing back most of those losses as global fears of a trade meltdown between the United States and China gave way to news that the sides will keep talking this week in Washington.
The Dow Jones industrial average plunged more than 471 points, or about 1.7 percent, in early trading. But by the end of the day the Dow had recouped almost all of that, finishing 66 points down, or 0.25 percent, at the close.
The Standard & Poor’s 500-stock index and tech-heavy Nasdaq composite index also recovered from shaky starts. The S&P closed down 13 points to finish at 2,932, a decline of 0.45 percent. The Nasdaq finished at 8,123, a loss of 40 points, or half of 1 percent.
“It was certainly buy the dip,” said Kenny Polcari of ButcherJoseph Asset Management. “What happened is the Chinese threatened not to come to the talks. They changed their mind and now are coming. Trump’s tweets did not deter them. So the market bounced.”
However, after the markets closed, senior Trump administration officials accused the Chinese of “reneging” on commitments made earlier in trade talks. They reaffirmed their plan to raise tariffs on a wide range of Chinese goods on Friday.
“Over the course of the last week or so, we have seen an