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| Stocks Rise After U.S. and China Put Trade War on Hold | Stocks Rise After U.S. and China Put Trade War on Hold |
| (35 minutes later) | |
| Stocks rose on Wall Street, after President Trump and President Xi Jinping of China reached a truce in the two countries’ trade war. | |
| After gaining nearly 1.4 percent in early trading, the S&P 500 was higher by less than 1 percent by midmorning. Shares of industrial stocks surged, as exporting giants such as Boeing, Caterpillar and Deere pulled the export-reliant S&P 500 industrial sector higher. Semiconductor makers, which have been hurt by the potential for the trade war to disrupt their widespread production networks in Asia, rose as well. | |
| Wynn Resorts, the gaming company whose extensive operations in the Chinese gambling center of Macau has made it especially sensitive to the tensions between China and the United States, was the best performing stock in the S&P 500-stock index early on Monday. | Wynn Resorts, the gaming company whose extensive operations in the Chinese gambling center of Macau has made it especially sensitive to the tensions between China and the United States, was the best performing stock in the S&P 500-stock index early on Monday. |
| The rally in American stocks followed solid increases in Asian and European equity markets on Monday. | The rally in American stocks followed solid increases in Asian and European equity markets on Monday. |
| Overnight, Chinese shares had led the rise, climbing more than 2.5 percent, with the market in Hong Kong following closely. Investors elsewhere were more restrained, sending shares up less than 2 percent in Australia, Japan and South Korea. | Overnight, Chinese shares had led the rise, climbing more than 2.5 percent, with the market in Hong Kong following closely. Investors elsewhere were more restrained, sending shares up less than 2 percent in Australia, Japan and South Korea. |
| Stocks in Europe followed a similar trajectory. Stocks in Germany, an export-focused economy with strong trade ties to China, rose nearly 2 percent. | Stocks in Europe followed a similar trajectory. Stocks in Germany, an export-focused economy with strong trade ties to China, rose nearly 2 percent. |
| Other markets responded in kind to the trade truce, which was reached Saturday in Buenos Aires. Soybeans rose on commodities markets on the prospect that China would begin to buy American-grown crops again. China’s currency, the renminbi, strengthened against the United States dollar. | Other markets responded in kind to the trade truce, which was reached Saturday in Buenos Aires. Soybeans rose on commodities markets on the prospect that China would begin to buy American-grown crops again. China’s currency, the renminbi, strengthened against the United States dollar. |
| The détente, forged over a dinner between the leaders of the world’s two largest economies, merely postpones a larger reckoning over trade. Under the deal, the United States will postpone an increase in tariffs that were set to be imposed Jan. 1, and it sets a March 1 deadline for the countries to reach a more extensive pact. | The détente, forged over a dinner between the leaders of the world’s two largest economies, merely postpones a larger reckoning over trade. Under the deal, the United States will postpone an increase in tariffs that were set to be imposed Jan. 1, and it sets a March 1 deadline for the countries to reach a more extensive pact. |
| The deal leaves in place American tariffs on $250 billion in Chinese goods and the retaliatory measures enacted by Beijing. It is unclear whether the countries can resolve such thorny questions as the Chinese government’s support for sensitive industries and protections for American-created intellectual property. | The deal leaves in place American tariffs on $250 billion in Chinese goods and the retaliatory measures enacted by Beijing. It is unclear whether the countries can resolve such thorny questions as the Chinese government’s support for sensitive industries and protections for American-created intellectual property. |
| But given the issues that remain unresolved between China and the United States, investor enthusiasm may be fleeting. | But given the issues that remain unresolved between China and the United States, investor enthusiasm may be fleeting. |
| “We anticipate that things are still likely to get worse before they get better,” Kerry Craig, global market strategist for the asset management arm of JPMorgan, said in an emailed statement. | “We anticipate that things are still likely to get worse before they get better,” Kerry Craig, global market strategist for the asset management arm of JPMorgan, said in an emailed statement. |
| “Small rays of light such as this create tactical opportunities for investors,” he added, “but on balance we would be more cautious on positioning heading into 2019.” | “Small rays of light such as this create tactical opportunities for investors,” he added, “but on balance we would be more cautious on positioning heading into 2019.” |
| Chinese investors were perhaps more cheered in part because the official media there de-emphasized the temporary nature of the agreement. It also played down continued areas of disagreement, such as intellectual property protections. | Chinese investors were perhaps more cheered in part because the official media there de-emphasized the temporary nature of the agreement. It also played down continued areas of disagreement, such as intellectual property protections. |