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.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 161516

Reported Deaths: 3916
CountyCasesDeaths
DeSoto10863104
Hinds10705207
Harrison7624114
Jackson6774131
Rankin6303114
Lee557798
Madison5311112
Forrest405587
Jones388589
Lauderdale3754149
Lafayette347358
Washington3421108
Lamar310350
Lowndes265168
Oktibbeha262763
Bolivar254686
Panola243754
Neshoba2333124
Marshall229451
Leflore216492
Monroe216278
Pontotoc213631
Lincoln203267
Sunflower198156
Warren189559
Tate187251
Union179626
Copiah176141
Pike170860
Pearl River168170
Itawamba166637
Scott166030
Yazoo164441
Alcorn161529
Coahoma160044
Prentiss159034
Simpson156954
Grenada149545
Adams148852
Leake146244
George138326
Covington137642
Holmes136861
Tippah135230
Winston134326
Hancock132842
Wayne127424
Attala126836
Marion126548
Tishomingo116444
Newton114929
Chickasaw112632
Tallahatchie101227
Clay98527
Clarke96954
Jasper90023
Stone85115
Calhoun82413
Montgomery80726
Walthall80430
Carroll78115
Lawrence76814
Smith76516
Yalobusha75728
Noxubee74817
Perry70127
Greene66023
Tunica64019
Amite61815
Jefferson Davis60818
Claiborne59716
Humphreys56119
Benton51018
Quitman5107
Kemper50019
Webster49514
Wilkinson42522
Jefferson39012
Franklin3866
Choctaw3757
Sharkey33517
Issaquena1254
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Alabama Coronavirus Cases

Cases: 264199

Reported Deaths: 3831
CountyCasesDeaths
Jefferson35310515
Mobile20626372
Madison14521153
Tuscaloosa13897173
Montgomery12844246
Shelby1127878
Baldwin9501138
Lee807167
Morgan740555
Etowah704870
Marshall695358
Calhoun6939126
Houston559140
DeKalb521843
Cullman490650
St. Clair466557
Limestone462446
Lauderdale452257
Elmore440070
Walker3914112
Talladega386157
Jackson373523
Colbert347948
Blount323146
Autauga294542
Franklin265534
Coffee260023
Dale247355
Dallas236832
Chilton235445
Covington234834
Russell23433
Escambia208832
Tallapoosa192692
Chambers189154
Clarke165422
Pike165215
Marion150236
Winston146325
Lawrence139936
Pickens129720
Geneva12929
Marengo127824
Bibb127038
Barbour121729
Butler121142
Cherokee108224
Randolph108022
Fayette102216
Hale102132
Clay95527
Washington94222
Henry9097
Monroe85311
Lowndes82930
Cleburne80914
Macon77522
Crenshaw73830
Lamar7348
Conecuh73215
Bullock71120
Perry7037
Wilcox65918
Sumter60122
Greene45818
Choctaw43620
Coosa3854
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