Stocks rebounded Tuesday from the sharp selloff on Monday that followed China’s announcement that it would hike tariffs on $60 billion of U.S. goods in retaliation for U.S. tariff hikes.
The Dow Jones Industrial Average rose by nearly 207 points, a 0.82 percent gain. The S&P 500 climbed 0.8 percent. The Nasdaq Composite rose by 1.14%. The Russell 2000, which is comprised of smaller companies with less international exposure, was up by 1.24 percent.
The Trump administration Monday released a list of Chinese products that could be subject to a new round of tariffs in late June, a move which many saw as escalating trade tensions. At the same time, however, Trump administration officials and President Donald Trump himself have insisted that trade talks have not broken down and negotiations continue.
Speaking to reporters Tuesday, Trump said he was confident that China would come back to the table for a deal.
“We can make a deal with China tomorrow,” Trump said in a tweet. But he added that the deal would only happen when “the time is right.”
Shares of companies with big exposures to China rallied Tuesday. Caterpillar and Boeing shares were up around 1.7 percent. Apple shares climbed 1.58 percent.
Ten out of the eleven sectors of the S&P rose Tuesday. The best performing sector was technology, followed by energy.