U.S. stock prices rise sharply following Trump-Xi meeting.
U.S. stocks extended their relief rally on Monday after President Trump and China’s Xi Jinping committed to resolving their trade dispute following weekend negotiations in Buenos Aires.
All of Wall Street’s major indices reported strong gains on Monday. The Dow Jones Industrial Average (NYSEARCA:DIA) rose 288.03 points, or 1.1%, to 25,826.49. The blue-chip index was up more than 400 points after the open.
The much broader S&P 500 Index (NYSEARCA:SPY) climbed 1.1% to close at 2,790.37. Nine of 11 primary sectors finished higher, with consumer discretionary and energy shares leading the way.
Meanwhile, the technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) advanced 1.5% to 7,441.51.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) declined sharply at the beginning of the week. The so-called “fear index” settled down 9.2% at 16.41 on a scale of 1-100 where 20 represents the historic average.
U.S. President Donald Trump and Chinese counterpart Xi Jinping have agreed to de-escalate their trade war following a fresh round of talks over the weekend. The face-to-face meetings occurred on the sidelines of the G20 summit in Buenos Aires, Argentina.
“My meeting in Argentina with President Xi of China was an extraordinary one. Relations with China have taken a BIG leap forward! Very good things will happen. We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!” Trump tweeted on Monday.
The Final Word: Trade optimism should keep stock prices well supported for the rest of the week. The weekend negotiations between Trump and Xi have also aided oil prices in their long road to recovery.