U.S.-China Trade Optimism Sparks Global Equities Rally but Dow Erases Most of Its 230-Point Gain

Wall Street and global stocks traded higher on Monday after President Trump and Xinhua news agency struck an optimistic tone on U.S.-China trade negotiations. XRP led digital assets higher in afternoon trading after Coinbase finally confirmed it will support the so-called banker’s cryptocurrency.

Stocks Extend Rally

All of Wall Street’s major indexes traded higher on Monday but settled well off session highs. The Dow Jones Industrial Average rose by as much as 230 points before paring most of its gains later in the day. It closed up 60.15 points, or 0.2%, at 26,091.95. The blue-chip index is coming off its ninth consecutive weekly gain, the longest such streak since 1995.

The broad S&P 500 Index gained 0.1% to 2,796.11. Materials stocks led seven of 11 primary sectors higher. Shares of information technology companies also outperformed.

The technology-focused Nasdaq Composite Index advanced 0.4% to 7,554.46.

A measure of implied volatility known as the CBOE VIX rose sharply on Monday. The so-called “fear index” posted a gain of 9.9% to close at 14.85. VIX settled at more than four-and-a-half-month lows on Friday.

U.S.-China Trade Talks to Continue

The United States and China made “substantial progress” on a number of key issues in their latest round of trade negotiations last week, Xinhua news agency said Monday in a brief report that still managed to spark investor optimism. The report, which cited China’s trade delegation to Washington, confirmed President Trump’s Sunday tweets where he announced “progress” on “issues including intellectual property, technology transfer, agriculture, services, currency” and others.

Delegates from both countries concluded intensive negotiations in Washington last week, including a nine-hour session on Thursday.

Both sides are expected to resume negotiations imminently, though details on forthcoming meetings haven’t been released.

XRP-Coinbase Rumors Confirmed

Following two years of speculation, XRP has finally made its way onto Coinbase, the popular San Francisco-based exchange. In an official blog post, Coinbase announced that users in the United States (excluding New York), Canada, Australia, United Kingdom and European Union member states will soon have access to XRP fiat pairs. This includes order books for XRP/USD, XRP/EUR, and XRP/BTC.

The initial rollout is being limited to Coinbase Pro and not Coinbase.com. The company said it will make a formal announcement when XRP is finally incorporated into Coinbase.com.

Breaking: Ripple Leads Crypto Recovery as Coinbase Finally Supports XRP

The news seemed to spark a huge rally for XRP, which gained more than 10% to $0.3355. Trade volumes dipped compared to the weekend high but remained right around the $1 billion mark.

XRP’s gains kick started a fresh rally for cryptocurrencies after a violent selloff on Sunday. Most of the top cryptocurrencies reported gains. Bitcoin recovered near $3,900; Litecoin, bitcoin cash and Stellar XLM all reported gains. They were partially offset by minor losses in Ethereum and EOS.

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.

Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi