Dow Jones up 300 points after Trump agrees to meet with Xi
Wall Street recovers after one of the worst trading days of the year.
Wall Street is rebounding after the worst day in the US stock market in months. The recovery comes as US President, Donald Trump, said he would meet with Chinese president Xi Jinping at a G-20 summit in June.
Why is the Dow Jones up again?
The Dow Jones is up after another attempt to end the US-China trade war. Trump's announcement of a summit with Xi has calmed investors for now. As IG analyst, Kyle Rodda, noted, volatility in the US and global markets increased as China raised tariffs in retaliation against the US.
Chinese tariffs on $60 billion worth of US goods could cause conflict for producers of many US products, from liquor to electronics. Businesses have said that with the increased taxes on imports, they will have to increase costs and pass them on to consumers.
With Trump tweeting about meeting Xi in June, there is cautious optimism that both nations will reach a trade agreement that will end the tariffs that are negatively affecting many American corporations, the Chinese economy, and the global economy overall.
What’s next for Wall Street?
Greg Luken, chief executive officer (CEO) of Luken Investment Analytics, said that this latest revival of the US stock market is a ‘dead cat bounce’, or a temporary rebound before the continued fall of the US stock market. He also believes the US-China trade conflict won’t be resolved quickly.
‘I think this is going to last for a while. This is not something that’s going to be resolved tomorrow and anybody who says they know exactly how this will play out is spinning a yarn,’ said Luken.
Wall Street will be monitoring the latest US-China trade development to see how the two nations will settle this impasse.
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