President Trump’s tweet minutes after the open sent markets soaring. Leaders of the two largest economy spoke on the phone and expectations are for them to hold an extended meeting at the G-20. Markets previously were concerned if Xi was going to attend and if anything of substance would come out of the G20 summit. China’s state media confirmed the call between Trump and Xi.
Investors rushed to US stocks, with the S&P 500 index rising 1.1%, the Dow Jones Industrial higher by 1.3% and the tech heavy Nasdaq leading the rally with 1.8% gain. The dollar also remains near its high of the session.
US equities may be poised to make a run at those record highs if we see continued trade optimism and a strong dovish signal from the Fed.