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Markets Jump After US-China Trade Thaw

Trump says 'phase one deal' is secured as Dow jumps 319
By Newser Editors,  Newser Staff
Posted Oct 11, 2019 2:54 PM CDT
Updated Oct 11, 2019 3:10 PM CDT
In this June 29, 2019, file photo, President Trump meets with Chinese President Xi Jinping during a meeting on the sidelines of the G-20 summit in Osaka, Japan.   (AP Photo/Susan Walsh, File)

(Newser) – The markets seem pretty happy with newly reported progress in US-China trade talks. President Trump on Friday declared that the US has agreed on a "very substantial phase one deal" with Beijing, reports CNBC. And earlier, he tweeted that "good things are happening at China Trade Talk Meeting" and referenced "warmer feelings than in recent past, more like the Old Days." Immediate details were scarce, but the upbeat talk helped the stock market to its biggest one-day jump in weeks, notes the Wall Street Journal. The Dow rose 319, or 1.2%, to 26,816; the S&P 500 rose 32, or 1%, to 2,970; and the Nasdaq rose 106, or 1.3%, to 8,057.

The AP reports that the US is suspending a tariff hike that was due to take effect Tuesday on $250 billion worth of Chinese imports, while China has agreed to buy $40 billion to $50 billion of US farm products. However, "thornier issues," including US allegations that China makes foreign companies turn over trade secrets, were left for future negotiations. (Read more US-China relations stories.)

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