Dow jumps 1.5% amid report that China open to extending $1 trillion-a-year olive branch on trade – MarketWatch


U.S. stock indexes Friday midday clambered higher after a report from Bloomberg said Chinese officials were open to eliminating an imbalance with the U.S. that has been a source of trade tension between the two largest economies in the world and a major headwind for stocks. The Dow Jones Industrial Average DJIA, +1.36% rose 368 points, or 1.5% at 24,734, the S&P 500 index SPX, +1.36% advanced 1.5% at 2,674, while the Nasdaq Composite Index rose 1.4% at 7,181. Bloomberg on Friday, citing sources familiar with talks, reported that China has offered to go on “a six-year buying spree to ramp up imports from the U.S., in a move that would reconfigure the relationship between the world’s two largest economies.” China would increase purchases of U.S. imports over six years to reach more than $1 trillion per year, according to the report, which comes a day after the Wall Street Journal reported that Treasury Secretary Steven Mnuchin had debated eliminating China tariffs as a tactic toward advancing talks on their protracted trade dispute and easing tensions. However, a Treasury spokesman has walked back that story, saying that discussions continue and no decisions have been made. Trade issues have been the greatest source of friction for stock markets here and abroad, market participants have said.




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