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Investing.com — U.S. stock markets opened higher on Tuesday after President Donald Trump moved to dispel concerns about a new trade war between the U.S. and China.
Trump had publicly contradicted his trade advisor Peter Navarro late on Monday after Navarro told Fox News that the phase-one trade deal signed in January, under which the U.S. had suspended many of the import tariffs it had imposed over the previous 18 months, was “over”. Trump said via Twitter the deal was “fully intact,”
Data from the USDA and others suggest that China has fallen far short of its commitments under the deal to buy U.S. farm goods, as its own economic growth – and demand for commodities – has fallen far short of what it had expected before the coronavirus pandemic. As such, market participants interpreted Trump’s intervention as less a statement of fact that an admission that there was no stomach for raising tariffs again – a measure that would hit U.S. consumers’ spending power at a time when over 20 million are unemployed.
By 9:45, the Dow Jones Industrial Average was up 275 points, or 1.1% at 26,300, while the S&P 500 and the Nasdaq Composite were both up 0.9%.
