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 China's 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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
