Dow Recovers as Wall Street Gorges on Bittersweet Trade War Boasts

  • The Dow bounced back as investors seized on bullish trade war news and ignored murkier headlines.
  • Donald Trump and Xi Jinping both assessed the current state of US-China trade negotiations.
  • Trump said a deal was “very close,” while Xi said China would fight to defend its interests.

The Dow recovered from yesterday’s losses on Friday, as investors gorged on the tastier morsels from a spate of bittersweet trade war headlines.

With the clock ticking on a new round of tariff hikes, enough rumors are swirling to satisfy bullish and bearish appetites alike.

Dow Snaps 3-Day Losing Streak

The US stock market ticked higher on Friday. The Dow Jones Industrial Average snapped its three-day losing streak, rising 41.63 points or 0.15% to 27,807.92.

dow chart today
The Dow recovered from three straight days of losses on Friday. | Source: Yahoo Finance

The S&P 500 nudged 4.7 points or 0.15% higher to 3,108.44, and the Nasdaq climbed 16.11 points or 0.19% to 8,522.32.

The gold price also recovered; the yellow metal bounced 0.37% to $1,469, despite the risk-on move in stocks. The bitcoin price was not so lucky, and the leading cryptocurrency careened below $7,000 to extend its brutal plunge.

Trump & Xi Weigh in on State of Trade Talks

The Dow and its peers cautiously advanced amid a deluge of dizzying trade war headlines that mostly confirmed whatever preconceived notions investors already harbored.

Donald Trump and Xi Jinping both weighed in on the state of US-China relations, but neither man said anything that fundamentally altered the trade war forecast.

donald trump and xi jinping weigh in on trade deal
Trump and Xi both addressed the trade war on Friday, and the Dow responded positively. | Source: AP Photo/Alex Brandon

On Friday, President Trump told “Fox and Friends” that the US was “very close” to reaching a trade deal with China. That should be wildly bullish for stocks, except that he’s made the same claim multiple times since Oct. 11 – when he said that the two countries had already agreed to the outlines of a deal.

Considering that…

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