The US stock market jumped higher Thursday, with President Donald Trump due to meet Chinese Vice Premier Liu He.
Trade negotiations between the United States and China resumed Thursday for the first time since July. Trump called it a “big day” for the negotiations in a tweet, adding “they want to make a deal, but do I?”
Trump also announced he would meet with Liu at the White House on Friday.
Stocks had started the session more or less flat, but a rally kicked off following the tweet. The Dow (INDU) finished 151 points, or 0.6% higher, having jumped nearly 260 points at its peak.
“The market is rallying today because a meeting is taking place that we thought was taking place until we thought it wasn’t taking place,” said JJ Kinahan, chief strategist at TD Ameritrade. “Its like a high school cafeteria.”
Indeed, the trade negotiations come amid an onslaught of headlines and developments in US-China relations this week.
The US blacklisted 28 Chinese organizations over their alleged involvement in human rights violations. On Wednesday, a Reuters report said Chinese official weren’t optimistic about progress in the talks because the US blacklisting Chinese organizations hurt Beijing’s goodwill.
A Bloomberg report Wednesday meanwhile fueled hopes that a partial trade could be reached.