** China will make “substantial” purchases of US agricultural products, and the US will not raise the existing tariffs on $250 billion of Chinese imports from 25% to 30% as threatened on October 15.
** We continue to get no indication, however, that the 25% tariffs will be rolled back, yet – note that this has not been a demand we have heard from Beijing for a very limited cease-fire – nor do we have indication that there will be any assurances at this point from the US over the threatened next round of December 15 tariffs.
U.S. stocks surged Friday as investors cheered progress on trade negotiations between the U.S. and China, helping the S&P 500 break a three-week losing streak.
President Trump said just before the closing bell that the two countries reached a “very substantial Phase One deal” and agreed not to implement tariffs set to go into effect next week. China, meanwhile, said it would increase purchases of U.S. agricultural products.
The Dow industrials closed up 319.92 points, or 1.2%, to 26816.59. The index rose as much as 517 points earlier in the session but pared some of those gains as traders learned that two pressure points remained unresolved: a final decision on a new round of tariffs set for December and policies around Chinese telecom giant Huawei Technologies Co.