Dow Pops While Trump Trade War Hits Unsettling Milestone

  • The Dow bounded into the holiday season with a recovery during December’s first trading session.
  • Today is the one year anniversary of an important trade war event.
  • Trump commemorated the occasion by boasting that tariffs hadn’t hurt – and may have even helped – the stock market.

The Dow shook off its Black Friday slump this morning, rising a few dozen points to begin December on a high note.

But as the trade war rumbles toward a new set of tariffs in less than two weeks, stock market bulls must wrestle with the passage of an unsettling milestone.

Dow Starts December on a High Note

Wall Street’s three primary indices diverged on Monday, and stocks pared the gains promised from an optimistic futures session.

dow jones chart today
The Dow rose a few dozen points on Monday. | Source: Yahoo Finance

The Dow Jones Industrial Average rose 41.12 points or 0.15%, lifting the index to 28,092.53.

The S&P 500 moved sideways, rising 0.45 points or 0.01% to 3,141.43.

The Nasdaq dipped slightly, falling 7.14 points or 0.08% to 8,658.33.

The gold price resumed its backbreaking slide, and Treasury bond yields edged slightly higher as investors took on a bit more risk.

The Trade War Just Crossed an Unsettling Milestone

The next round of tariff hikes are now less than two weeks away, but if today’s stock market bounce is any indication, Dow Jones bulls don’t appear overly concerned.

That’s particularly striking because Monday marks a disquieting anniversary for the US-China trade war. One year ago today, US President Donald Trump and Chinese President Xi Jinping agreed to a temporary tariff truce.

anniversary of Donald Trump Xi Jinping tariff truce
Last December, Trump and Xi agreed to a temporary tariff truce. One year later, there’s still no trade deal. | Source: Brendan Smialowski / AFP

“It’s an incredible deal. It goes down, certainly — if it happens, it goes down as one of the largest deals ever made,” Trump gushed at the time.

Maybe that statement was a tad braggadocious. But surely, the 90-day armistice would provide the two countries…

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