The stock market is edging higher in Monday morning trading after President Donald Trump signaled that the United States and China will return to the negotiating table.
The Dow Jones Industrial Average had jumped more than 168 points, or 0.66%, as of 10:45 a.m. ET. The S&P 500 was also up 0.6%, or 17 points, while the Nasdaq Composite climbed 0.8%, or 62 points. The moderate rebound overall comes on the heels of the U.S. leader’s tweet in which he expressed “great respect” for his Chinese counterpart as they seek a resolution to their yearlong trade war.
“Great respect for the fact that President Xi & his Representatives want ‘calm resolution,'” Trump wrote on Twitter. “So impressed that they are willing to come out & state the facts so accurately. This is why he is a great leader & representing a great country. Talks are continuing!”
The market rally also follows the Group of Seven summit over the weekend in Biarritz, France. In an interview with reporters on Monday, Trump indicated that the world’s two largest economies would make progress on trade talks. On Friday, the president said he would raise tariffs from 10% to 15% on $300 billion dollars worth of Chinese goods following China’s announcement of retaliatory duties.
“China called last night our top trade people and said, ‘Let’s get back to the table,'” he said. “So we will be getting back to the table, and I think they want to do something. They have been hurt very badly, but they understand this is the right thing to do and I have great respect for it. This is a very positive development for the world.”
The fourth tranche of tariffs is scheduled to go into effect on two separate dates, Sept. 1 and Dec. 15. It will affect mobile phones, laptops and toys as well as unspecified items of footwear and apparel.
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