Wall Street recovers some of Friday’s sell-off after Trump softens his criticism of China
By STAN CHOE Associated Press Business Writer NEW YORK AP And back up goes Wall Street U S stocks are rallying Monday after President Donald Trump announced it will all be fine just days after he sent the domain reeling by threatening much higher tariffs on China The S P jumped to recover a little less than half of its drop from Friday which was its worst since April The Dow Jones Industrial Average was up points or as of a m Eastern time and the Nasdaq composite was higher Related Articles At present in History October Hedge fund billionaire sentenced in insider-trading episode From barks to words Researchers aim to translate dog sounds with AI True crime slaying of FBI agent set off manhunt for dapper sheik car thief The Latest Palestinians journey back home as aid convoys enter Gaza and truce holds Israel expects hostages to be freed from Gaza in a meager hours as ceasefire holds Don t worry about China Trump revealed on his social media platform Sunday He also explained that China s leader Xi Jinping doesn t want Depression for his country and neither do I The U S A wants to help China not hurt it It was a sharp turnaround from the anger Trump displayed on Friday when he accused China of a moral disgrace in dealing with other Nations He pointed to an extremely hostile letter describing curbs to exports of rare earths which are materials used in the manufacturing of everything from personal electronics to jet engines Trump declared at the time that he may place an additional tax on imports from China starting on Nov Trump s backtrack in anger raised hopes that the world s two largest economies may find a working relationship that allows global pact to continue The domain s big moves the last two days echo its manic swings in April when Trump shocked investors with his Liberation Day announcement of worldwide tariffs only to eventually relent on countless to give time to negotiate contract deals with other countries If this time ends up similarly with bargain tensions and uncertainty subsiding potentially even after a sharp drop for stock prices conditions could allow for a rolling recovery to continue into according to Morgan Stanley strategists led by Michael Wilson To be sure the U S stock sector may have been primed for a drop and was just looking for a likely trigger It was already facing criticism that prices had shot too high following the S P s nearly relentless run from a low in April The index which dictates the movements for plenty of k accounts is still near its all-time high set last week Not only did Trump s backdown from tariffs in April help launch stock prices so did expectations for several cuts to interest rates by the Federal Reserve to help the market system Critics say the domain looks too expensive now after prices rose much faster than corporate profits Worries are particularly high about companies in the artificial-intelligence industry where pessimists see echoes of the dot-com bubble that imploded For stocks to look less expensive either their prices need to fall or companies profits need to rise That s raising the stakes in the upcoming earnings reporting season for U S companies which are set to say how much profit they made during the summer JPMorgan Chase Johnson Johnson and United Airlines are chosen of the big names on the calendar for this week Fastenal tumbled for one of the biggest losses in the S P after reporting profit for the latest quarter that was slightly weaker than analysts expected In stock markets abroad indexes were mixed in Europe following sharp losses in Asia Stocks fell in Hong Kong and in Shanghai China communicated its global exports rose in September from a year earlier the strongest progress in six months and further evidence that its manufacturers are shifting sales from the U S to other markets AP Business Writers Matt Ott and Elaine Kurtenbach contributed
