U.S. stocks rose Monday morning as President Trump said officials from Washington and Beijing will return to the negotiating table, bouncing back after the three stock indexes plunged Friday following the latest escalation in the president’s trade dispute with China.
The blue-chip Dow Jones Industrial Average rose 280 points, or 1.1%, after market open, while the broader S&P 500 and tech-heavy Nasdaq each gained 0.9%.
The change of course came after stocks tumbled Friday in response to the latest escalation in the president’s protracted trade war with China. The Dow plunged more than 600 points, roughly 2.4%, while the S&P finished down 2.6% and the Nasdaq fell 3%.
China on Friday announced it would be slapping new tariffs on $75 billion in U.S. goods, and in response, the president “ordered” U.S.-based companies to start looking for an alternative source for products imported from China.
Trump went on to hike tariffs on the $250 billion in Chinese imports already in place. The president announced in a tweet that the goods, which currently are hit with a 25% duty, will instead be taxed at 30%. Additionally, $300 billion worth of Chinese imports set to be taxed at 10% beginning Sept. 1 will now face a 15% levy.
While the retaliatory moves led U.S. stocks to fall sharply, the rebound came after Trump tweeted Beijing wants a “calm resolution” and said trade talks would continue. The president also told reporters at the G-7 summit in Biarritz, France, that China wants to “make a deal.”
