By Robert Schroeder, MarketWatch
President Donald Trump said a “big deal” with China was imminent in a tweet that sent stocks soaring to new all-time highs Thursday, ahead of a looming Sunday deadline for new tariffs on consumer products.
As he was set to meet with his top trade advisers , Trump tweeted: “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”
On Sunday, tariffs on $160 billion on Chinese goods are set to kick in. There has been question if Trump would delay or cancel those tariffs if a deal wasn’t achieved by the self-impose deadline.
Late Thursday, the Wall Street Journal reported the White House had signaled it would approve a limited trade accord.
U.S. stocks jumped after Trump’s tweet, with the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.17% finishing up about 220 points, just shy of a record, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.06% and Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -0.87% closed at an all-time high, while the yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y 0.00% briefly rose above 1.9% on the trade optimism.
The Wall Street Journal reported U.S. negotiators had offered to cut existing tariffs by as much as half on $360 billion of Chinese-made products , and said tariffs set to take effect Sunday would be canceled.
Bloomberg News followed with a similar report soon after, signaling that negotiators had reached the terms of a phase-one pact, but noted that Trump still had to sign off on it.
The U.S. side has demanded that Beijing make firm commitments to purchase large quantities of U.S. agricultural and other products, the Journal said.