NEW YORK: Wall Street stocks jumped in early trading Monday after President Donald Trump softened his posture on China following earlier threats of large tariffs.
Trump, who on Friday announced “massive” tariffs due to Chinese restrictions on rare earths, backed off that stance, saying in a Sunday social media post “it will all be fine,” adding that the United States wants to “help” China.
About 10 minutes into trading, the Dow Jones Industrial Average was up 1.0 percent at 45,946.19.
The broad-based S&P 500 gained 1.2 percent to 6,628.99, while the tech-rich Nasdaq Composite Index advanced 1.5 percent to 22,527.53.
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“The market is very encouraged by the softening stance that the president seems to have taken about tariffs and trade issues with China, that’s manifesting itself in a big release rally,” said Steve Sosnick of Interactive Brokers.
“The market is going to be hinging upon any comments related to trade and tariffs going.”
Earnings season gets underway in earnest this week, with reports from JPMorgan Chase, Goldman Sachs and other financial heavyweights on Tuesday.
The IMF and World Bank’s semi-annual gathering of finance ministers and central bank governors also begins in Washington on Monday.
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