Dow Surges as Trump Signals China Trade Deal Still on the Table
The Dow and broader U.S. stock market rebounded sharply on Tuesday after President Trump seemed to indicate that a swift trade deal with China is still possible. Crypto markets pulled back slightly in afternoon trading, though the likes of XRP and Stellar still posted solid returns.
Dow Rebounds; S&P 500, Nasdaq Follow
All of Wall Street’s major indexes reported big gains, helping to offset a brutal Monday slide that knocked more than 600 points off the Dow Jones. On Tuesday, the Dow 30 index climbed 207.06 points, or 0.8%, to 25,532.05.
The broad S&P 500 Index of large-cap stocks advanced 0.8% to close at 2,834.41. Among the S&P 500’s 11 major sectors, ten finished higher and three reported gains of at least 1%. Information technology was the biggest gainer percentage wise, rising 1.6%.
Surging tech shares lifted the Nasdaq Composite Index to gains of 1.1% where it finished at 7,734.49.
Trump: Trade Deal Still Possible
President Trump took to Twitter on Tuesday to suggest that a trade deal with China could be reached fairly quickly once Beijing agrees to do its fair share.
“When the time is right we will make a deal with China,” Trump said. “My respect and friendship with President Xi is unlimited but, as I have told him many times before, this must be a great deal for the United States or it just doesn’t make any sense.
“We have to be allowed to make up some of the tremendous ground we have lost to China on Trade since the ridiculous one sided formation of the WTO. It will all happen, and much faster than people think!”
When the time is right we will make a deal with China. My respect and friendship with President Xi is unlimited but, as I have told him many times before, this must be a great deal for the United States or it just doesn’t make any sense. We have to be allowed to make up some…..
— Donald J. Trump (@realDonaldTrump) May 14, 2019
China has vowed to “fight to the finish” in protecting its trade interests. On Monday, Beijing announced it would implement tariffs on an additional $60 billion worth of American goods. The Trump administration responded Tuesday by listing an additional $300 billion worth of Chinese goods for possible tariff hikes.
XRP Takes the Crypto Reigns
Crypto markets touched new yearly highs on Tuesday, with altcoins and tokens playing catch up to bitcoin’s 35% gain in the past week.
XRP, the so-called banker’s cryptocurrency, briefly traded above $0.4100 following a 25% rally. It was last seen trading just below $0.4000, up more than 20% on the day. The 40-cent region presents a major stumbling block for XRP, which has struggled to regain momentum for much of 2019.
After peaking north of $8,300, bitcoin’s price consolidated lower on Tuesday. At the time of writing, the average BTC price was hovering around $7,815, where it was little changed.
Stellar (XLM) rose 8.7% to $0.1104, the highest in over three weeks. Cardano (Ada) climbed 4.9% to $0.07875.
The cryptocurrency market capitalization peaked at $244.7 billion, with major exchanges reporting combined trade volumes of more than $100 billion.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via Stockcharts.com and CoinMarketCap.