The US stock market is soaring on positive trade talk news, Market Watch reports. US President Donald Trump has tweeted that "good things" were happening during the second day of China trade negotiations.
Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days. I will be meeting with the Vice Premier today. All would like to see something significant happen!— Donald J. Trump (@realDonaldTrump) October 11, 2019
The Dow is currently up by 1.52 percent, gaining more than 400 points at the time of writing. The S&P 500 is sitting at 2,983 after rising by 1.54 percent. Both indexes are inching closer to record new highs.
With that being said, the US stock market is still on the fence since that any pushback in trade talks will vanish these gains in a snap.
“The whole U.S.-China trade negotiations have been a cloud over the markets in the last few weeks. If this partial breakthrough comes to fruition, it will give at least a temporary boost to the markets, and we’re seeing that reflected in stocks this morning," says Michael Arone of State Street Global Advisors.
The US is expected to increase tariffs from 25 percent to 30 percent on $250 bln worth of Chinese goods on Oct. 15. Hence, the two superpowers have very little time to reach a deal. As Reuters reported, a state-run Chinese newspaper floated the idea of a "partial" trade deal that would benefit both countries.
Will the US and China be able to reach a trade deal? Feel free to leave your comment!