The stock market surged into the green Wednesday morning amid signs of progress on trade talks between the United States and China.
The Dow Jones Industrial Average climbed 323 points, or 1.3 percent, to 24,695 shortly after President Donald Trump announced that the two countries were involved in “very productive conversations.”
Investor optimism also follows Trump’s Tuesday interview with Reuters, where he explained that he could use the arrest of Huawei chief financial officer Meng Wanzhou as a bargaining chip in negotiations with Beijing. (The Chinese tech executive was granted bail by a Canadian judge yesterday and now awaits possible extradition to the U.S. on fraud charges related to alleged Iran sanctions violations.)
“If I think it’s good for the country, if I think it’s good for what will be certainly the largest trade deal ever made — which is a very important thing — what’s good for national security, I would certainly intervene if I thought it was necessary,” Trump said.
Separately, a Wall Street Journal report detailed China’s plan to mollify its protectionist stance through a new program that would give foreign companies greater access to the Chinese market in an effort to ease tensions with the U.S.
The trade war between two of the world’s largest economies hit a standstill last weekend at the G20 summit, where Trump and Chinese President Xi Jinping agreed to a 90-day financial ceasefire — temporarily shutting down the White House’s threat to raise levies from 10 percent to 25 percent on $200 billion worth of goods. (The U.S. has already slapped tariffs on $250 billion worth of Chinese imports.)
Globally, Wall Street is also closely monitoring the situation concerning British Prime Minister Theresa May, who today faces a no-confidence vote in Parliament that could determine the fate of her leadership.
As of 11:35 a.m. ET, the Dow is up 299.50 points, or 1.23 percent, to 24,669.74.
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