Stocks are rising sharply on Wall Street Tuesday after Chinese President Xi Jinping offered possible concessions in a trade dispute with the US.
The Dow Jones industrial average rose as much as 500 points as investors hope the world’s largest economies will resolve their differences without a trade war that hampers global commerce. Xi promised to reduce China’s tariffs on imported cars and to improve intellectual property protection.
The S&P 500 index surged 42 points, or 1.6 percent, to 2,655 as of 11:15 a.m. Eastern time. The Dow gained 495 points, or 2.1 percent, to 24,469. Earlier it rose 517 points. The Nasdaq composite added 114 points, or 1.7 percent, to 7,064. The Russell 2000 index of smaller-company stocks advanced 24 points, or 1.6 percent, to 1,538.
Stocks had been on track for a similarly big jump Monday before a late slump wiped out most of their gains. The Dow rose as much as 440 points during the day, but finished just 46 points higher.
Speaking at a business conference, Xi made no direct mention of the trade dispute with the US, but promised changes in areas that the US has identified as priorities. In addition to intellectual property protections and auto tariffs, he discussed opening China’s banking industry and increasing its imports. He didn’t address other thorny topics including requirements for foreign companies to give technology to potential local competitors.
General Motors rose 80 cents, or 2.1 percent, to $38.63 and Ford rose 26 cents, or 2.3 percent, to $11.51. Tesla climbed $12.99, or 4.5 percent, to $302.65.
Among banks, JPMorgan Chase gained $2.12, or 1.9 percent, to $112.52 and Citigroup picked up $1.55, or 2.2 percent, to $70.99.
Technology and industrial companies have made some of the biggest swings on the market during the trade spat. If the US and China both place tariffs on imports from the other, industrials face greater costs as well as with lower sales. Technology companies might face manufacturing changes and slower growth in the global economy.
Apple climbed $2.99, or 1.8 percent, to $173.04 and chipmaker Texas Instruments gained $2.30, or 2 percent, to $101.84. Among industrials, aerospace company Boeing rallied $11.68, or 3.6 percent, to $334.16 and construction equipment maker Caterpillar jumped $4.99, or 3.5 percent, to 148.07.