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Dow surges 669 points as trade war fears cool

Wall Street got over its trade war fears for a day.The Dow surged 669 points - its third-biggest point gain in...

Posted: Mar 27, 2018 8:35 AM
Updated: Mar 27, 2018 8:35 AM

Wall Street got over its trade war fears for a day.

The Dow surged 669 points - its third-biggest point gain in history - and had its best day in two and a half years. Investors were cheered by signs that the United States and China are talking behind the scenes to avoid a clash between the world's two biggest economies.

It was a sharp reversal after the stock market's worst week in two years. The Nasdaq gained 3.3% and the S&P 500 climbed 2.7%.

The Dow's gain of 2.8% was its biggest since August 2015. The only bigger point gains on record were in October 2008, during the financial crisis.

Related: Wall Street's head-spinning reaction to trade headlines

The Wall Street Journal reported late Sunday that the United States and China started quietly negotiating to expand US companies' access to Chinese markets. The Journal reported that Treasury Secretary Steven Mnuchin was weighing a trip to Beijing to pursue the negotiations.

A Treasury Department spokesperson declined to confirm the report.

"We're not afraid of a trade war, but that's not our objective," Mnuchin said in an interview Sunday on Fox News. "We are going to proceed with our tariffs ... we're also working on investment restrictions," Mnuchin said. "But we are simultaneously having negotiations with the Chinese to see if we can reach an agreement."

Related: The US and China are in talks to try to avoid a trade war

Investors were encouraged by the discussions. Stocks took a beating last week after President Trump announced plans to impose new tariffs on about $50 billion of Chinese goods in retaliation for alleged Chinese intellectual property theft.

The Dow plummeted more than 1,100 points on Thursday and Friday, slipping into a correction - a decline of 10% from the index's all-time high in January. The Dow, S&P 500 and the Nasdaq suffered their biggest weekly losses since January 2016.

China also hit back on Trump's earlier aluminum and steel tariffs by threatening its own tariffs on about $3 billion worth of imports of US goods, including pork, fruit and wine.

Related: China may target American cherries, pistachios and sparkling wine

"The market thinks the tariffs are a trading tactic rather than a hardcore stance," said Sam Stovall, chief investment strategist at CFRA Research.

The "trade tiff" failed to dent the strong global economic outlook, Stovall said. "A sharp V recovery may not be all that surprising."

John Lynch, chief Investment strategist for LPL Financial, believes trade tensions could flare in the coming months, but the longterm risks to the market remain in check.

"When push comes to shove, we expect limited economic impact and manageable disruption to the supply chains of US companies," he said.

Twenty-nine of 30 companies on the Dow gained Monday. Microsoft led the way, gaining more than 7%. A Morgan Stanley analyst report said the company could top $1 trillion in market value within a year, powered by its cloud computing services.

The bond market also rallied from the cool down in US-China tensions.

The 10-year Treasury yield climbed to 2.83%. Last week, the 10-year yield fell sharply to 2.81% last week as investors sought safe haven from volatile stocks. Yields move opposite to prices.

-CNNMoney's Matt Egan and Jethro Mullen contributed to this story.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 603760

Reported Deaths: 7605
CountyCasesDeaths
Hennepin1247651771
Ramsey52437895
Dakota46772469
Anoka42693458
Washington27391290
Stearns22545224
St. Louis18120311
Scott17536134
Wright16400148
Olmsted13386102
Sherburne1199494
Carver1065848
Clay825492
Rice8186110
Blue Earth762343
Crow Wing681194
Kandiyohi667185
Chisago619152
Otter Tail585684
Benton582798
Goodhue483373
Douglas475381
Mower470733
Winona460851
Itasca458663
Isanti439564
McLeod429161
Morrison424361
Nobles407950
Beltrami406960
Steele397416
Polk388872
Becker386555
Lyon363853
Carlton352556
Freeborn346832
Pine335023
Nicollet330945
Mille Lacs311454
Brown307840
Le Sueur297125
Todd285632
Cass285532
Meeker263042
Waseca237823
Martin234932
Roseau210721
Wabasha20783
Hubbard196041
Dodge18773
Renville182346
Redwood176338
Houston174016
Cottonwood167124
Wadena162422
Fillmore157410
Faribault154319
Chippewa153838
Pennington153820
Kanabec146828
Sibley146810
Aitkin138637
Watonwan13589
Rock128719
Jackson122612
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Pope11296
Murray107010
Swift106918
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Stevens92411
Clearwater89016
Marshall88717
Wilkin83112
Lake82920
Lac qui Parle75622
Big Stone6044
Grant5938
Lincoln5843
Mahnomen5669
Norman5479
Kittson49022
Unassigned48093
Red Lake4017
Traverse3755
Lake of the Woods3453
Cook1720

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 370583

Reported Deaths: 6041
CountyCasesDeaths
Polk58186638
Linn21181339
Scott20287246
Black Hawk16065312
Woodbury15227230
Johnson1460585
Dubuque13496211
Dallas1128499
Pottawattamie11214173
Story1070848
Warren583591
Clinton561393
Cerro Gordo553193
Sioux516974
Webster514494
Muscatine4875106
Marshall486376
Des Moines466970
Wapello4333122
Buena Vista426140
Jasper420872
Plymouth402981
Lee381756
Marion365976
Jones300857
Henry294137
Bremer287760
Carroll286752
Boone268334
Crawford267840
Benton258755
Washington256751
Dickinson249344
Mahaska232251
Jackson225242
Clay216527
Kossuth216166
Tama211671
Delaware210943
Winneshiek197735
Page194522
Buchanan193033
Cedar192023
Hardin187344
Fayette186443
Wright185940
Hamilton181751
Harrison179973
Clayton171057
Butler165935
Madison164519
Mills163324
Floyd163042
Cherokee159338
Lyon158841
Poweshiek156936
Allamakee152652
Hancock150134
Iowa149824
Winnebago144331
Cass139255
Calhoun138913
Grundy137133
Emmet135841
Jefferson133535
Shelby131537
Sac130720
Union129935
Louisa129749
Appanoose129049
Mitchell126643
Chickasaw124517
Franklin123323
Guthrie123032
Humboldt119526
Palo Alto113623
Howard105022
Montgomery103638
Clarke100924
Keokuk96432
Monroe96230
Unassigned9540
Ida91535
Adair87332
Pocahontas85822
Davis85225
Monona82931
Osceola79016
Greene78011
Lucas77923
Worth7598
Taylor66712
Fremont6269
Decatur6159
Ringgold56324
Van Buren56318
Wayne54423
Audubon52910
Adams3444
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