AP Photo/Richard Drew
Stocks recouped their early losses as traders grew hopeful a trade deal could be ironed out between the US and China. The major indexes fell at the open after President Donald Trump on Monday said he expected the protectionist policies between the world’s largest economies to increase. Concerns about the prospect of slowing economic growth and rising rates have pummeled equities in recent months. Follow the US indices in real time here.
Stocks turned mostly positive Tuesday, recovering from earlier losses after President Donald Trump said he expects protectionist policies between the world’s largest economies to increase.
The Dow Jones Industrial Average rose 0.4% after falling as many as 225 points. The Nasdaq Composite closed mostly flat following sharp losses, and the S&P 500 also recovered to trade up 0.3%.
“Markets could remain volatile ahead of pivotal developments later this week, including minutes from the Federal Reserve and a meeting between the US and Chinese presidents,” said Vincent Heaney, a strategist at UBS.
White House economic adviser Larry Kudlow said Tuesday afternoon that a meeting between Trump and Chinese President Xi Jinping at the G20 meeting in Argentina this weekend could “turn the page” on the trade war.
On Monday, however, Trump told the Wall Street Journal he expects to move forward with a proposal to more than double the tariff rate from 10% to 25% on $200 billion worth of Chinese imports in January.
He also said if negotiations between Washington and Beijing don’t go well, his administration could place duties on the remainder of shipments from China to the US. Apple, whose products could be included in that tranche, slid as much as 1.5% before paring losses to close down 0.19% at $174.28 a share.
Signs of whether trade tensions or recent market turbulence