It is increasingly clear that the Commercial War between the Trump administration and China, has repercussions on the local and global economy. An instance of this is that Wall Street opened this Thursday with clear gains after the announcement that China and the United States will meet in early October in Washington.
As the recent escalation of the conflict between the two economic giants has left a trail of negative variables, investors have regained hope that an agreement can finally be reached.
Half an hour after opening, the Dow Jones Industrial Average, the main indicator of the New York Stock Exchange, rose by 1.60% or 422.99 points to 26,778.46.
The increases benefited almost all areas, but especially the financial, technological and industrial sectors, all with increases above 2%.
Profits also extended to the selective S&P 500, which rose 1.30 % or 38.29 whole, to 2,976.07, and to the Nasdaq Composite Index, which advanced 1.49 % or 118.72 units, to 8,095.60.
Among the 30 stocks that make up the Dow Jones, the progress of Intel (4,33 %), Caterpillar (3,91 %) or the JPMorgan Chase and Goldman Sachs banks, which gained around 3,40 %, was noteworthy.
In addition to Intel, other technology giants such as Apple and Microsoft, highly exposed to trade tensions between China and the U.S., also benefited from the latest news.
Today, the Chinese Ministry of Commerce reported in a statement that Washington and Beijing will hold a thirteenth round of high-level economic and trade negotiations in early October, which will be prepared by the teams of the two countries in mid-September.
The agreement came after a phone call involving, among others, China´s Vice Premier trade negotiator Liu He and U.S. Treasury Secretary Steven Mnuchin.
This is the first known contact since the new Chinese and US tariffs on imports from China came into effect last Sunday.
The trade dispute has begun to sow doubts in recent months about the economic prospects of both powers. In the United States, this situation has led the Federal Reserve (Fed) to cut interest rates.
The Wall Street Journal reported on Thursday that the U.S. central bank is preparing another quarter percentage point for its next meeting in two weeks.
Translated by: José Espinoza