Stocks Jump After Trump Calls Latest Talks with China “Constructive”

US President Donald Trump amd Vice President Mike Pence walk to the Rose Garden of the White House following the House of Representative vote on the health care bill on May 4, 2017 in Washington, DC. / AFP PHOTO / MANDEL NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
MANDEL NGAN/AFP/Getty Images
JOHN CARNEY

President Donald Trump said Friday afternoon that the talks with China over the last two days have been constructive and said his relationship with China’s Xi Jinping remained “very strong.”

The talks came to a conclusion Friday with no deal. In the middle of them, the U.S. followed through on Trump’s decision to raise tariffs on $200 billion of Chinese goods in retaliation for China attempting to reneg on earlier commitments to reform its economic policies.

Trump’s tweets seemed to provide some comfort to Wall Street. Stocks jumped higher right after they hit the digital airwaves.

All the major indexes ended the day in positive territory. The Dow Jones Industrial Average rose 114 points, or 0.44 percent. The S&P 500 rose by 0.37 percent. The Nasdaq just squeaked into positive territory with a 0.08 percent gain.

The trading capped a dramatic week on Wall Street, which saw several interday plunges and rallies as investors weighed the most likely outcomes in the trade dispute. At its low on Friday, the Dow was off by more than 350 points on Friday, only to bounce back with a massive 450 point rally.

Treasury Secretary Steven Mnuchin, in comments broadcast on CNBC, also described the talks as “constructive.” Mnuchin also said, however, that no further talks are scheduled as of now.

 

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