BREAKING: Dow jumps 300 points after China says it wants ‘calm’ trade resolution

[tacobell fan]

Stocks jumped on Thursday after China said it wished to resolve its protracted trade dispute with the world’s largest economy with a “calm ” attitude.

The Dow Jones Industrial Average traded 300 points higher, or 1.2%. The S&P 500 gained 1.2% while the Nasdaq Composite advanced 1.4%.

When asked about its ongoing trade war with the U.S., China’s commerce ministry said Thursday that it was opposed to escalating trade tensions, hinting Chinese authorities will not retaliate against the latest round of U.S. tariffs.

Trade bellwethers Boeing and Caterpillar rose at least 1% each while Deere traded 2.4% higher. Micron Technology gained 2%.

The U.S.-China trade war escalated earlier this month when China unveiled new levies on $75 billion worth of U.S. products. President Donald Trump then announced he would raise tariffs on a slew of Chinese goods starting in September.

This escalation has sent the major averages lower this month. The Dow and S&P 500 were both down around 3% in August entering Thursday’s session. The Nasdaq had lost nearly 4%.

The bond market has also flashed a recession signal this month. The closely-watched spread between the 10-year Treasury yield and the 2-year rate is trading around its lowest level since 2007. This is called a yield-curve inversion. Investors fear it because it has historically preceded a recession. Meanwhile, the rate on the benchmark 30-year Treasury bond sank to an all-time low.

 

Investors have also loaded up on traditional safer assets, such as gold and silver, this month. The SPDR Gold Trust (GLD) is up nearly 9% in August while the iShares Silver Trust (SLV) has surged around 13%.

“If central banks sit back and do nothing, and the Trade War persists, we go into recession. This is not likely,” said Nick Raich, CEO of The Earnings Scout, in a note. “Central banks remain ready, willing and able to extend the economic cycle taking us into probably something like inning #24.”

In economic news, second-quarter U.S. GDP growth was revised down to 2% from 2.1%. The revision was in line with analyst expectations. Pending home sales for July will follow slightly later in the session.

 

[SwamyRaRa]

Vuuu 

[r2d2]

'calm' ante.. Thaatha ni noru moosukomana?

[tacobell fan]

Just now, r2d2 said:

'calm' ante.. Thaatha ni noru moosukomana?

[Quickgun_murugan]

👍 

[r2d2]