Wall Street rallies with China trade war ‘on hold’

Ten minutes into the day’s trading, the benchmark Dow Jones Industrial Average had jumped nearly 300 points. — Reuters pic
Ten minutes into the day’s trading, the benchmark Dow Jones Industrial Average had jumped nearly 300 points. — Reuters pic

NEW YORK, May 21 — leapt higher at the open today with a jolt of enthusiasm greeting official statements that Washington and Beijing are no longer on a collision course on trade.

Despite an uncertain outcome after three days of talks with officials, US Treasury Secretary Steven Mnuchin said President Donald Trump has agreed put “on hold” massive tariffs on as much as US$150 billion (RM597 billion) in annual imports.

Ten minutes into the day’s trading, the benchmark Dow Jones Industrial Average had jumped nearly 300 points, adding 1.2 per cent to cross the 25,000-point mark for the first time since March 16, settling at 25,005.72.

The broader S&P 500 was up 0.8 per cent at 2,734.90 while the tech-heavy Nasdaq had gained about a full per centage point at 7,426.25.



“Not surprisingly, the knee-jerk response to the ‘on hold’ status of the trade war has been positive, yet there was the requisite caveat that tariffs could be imposed if doesn’t follow through on the commitment to buy more goods from the US that reduces the trade deficit,” Patrick O’Hare wrote a Briefing.com

Elsewhere, there were signs that corporate activity, and not just trade, was helping drive investor appetites.

Embattled engineering giant General Electric jumped 2.5 per cent after announcing it will merge its transport business with the rail transport business Wabtec in an US$11.1 billion deal.

Semiconductor firm Micron Technology, which was holding its annual investor day today, soared by 4.6 per cent after upping its third-quarter earnings guidance. 

But Fifth Third Bancorp sank 7.6 per cent on news it would acquire MB Financial for US$4.7 billion. — AFP

Source: The Malay Mail Online





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