Stocks ended down Monday, but bounced back from earlier lows after China said its trade representatives would still come to the U.S. for talks, despite President Trump’s tweets threatening to raise tariffs on China-made goods.
China said its negotiators are still prepared to come to the U.S. for talks this week, CNBC reported, but the delegation will be smaller. It was uncertain if Chinese Vice Premier Liu He will still lead the group, CNBC said, citing sources familiar with the matter.
Trump, who just days earlier had said trade negotiations were “going very well,” tweeted over the weekend that tariffs on $200 billion worth of goods could be imposed by Friday, with levies on a further $325 billion to follow “shortly.”
The Dow Jones Industrial Average, which had lost as much as 471 points, ended down 66 points, or 0.25%, to 26,438. The S&P 500 fell 0.45%, and the Nasdaq, which reached a record closing high on Friday, was off 0.50%.
Chevron (CVX – Get Report) advanced nearly 1% to $117.27 after Occidental Petroleum (OXY – Get Report) revised its $57 billion offer to buy Anadarko Petroleum (APC – Get Report) to include $59 a share in cash, up from a previous $38 a share. Occidental, which is trying to push aside Chevron in a bidding war, climbed nearly 1.4% to $58.77. Anadarko rose 1.7% to $72.72.
Alec Young, FTSE Russell’s managing director of global markets research, said that “the key question for investors is whether this is simply aggressive posturing in the hopes of securing greater concessions or something that could truly scuttle any brewing trade deal.”
“Without a successful U.S.-China trade breakthrough, it’s much harder to be constructive on the global macro outlook,” Young said. “So, it’s no surprise President Trump’s weekend tweets threatening to increase tariffs on $200 billion of Chinese imports to 25% on Friday sent futures tumbling. Along those lines,