Stocks Gain After White House Advisor Clarifies U.S.-China Trade Deal Comments
After some confusion late Monday on whether Phase 1 of the trade agreement was in jeopardy, White House trade adviser Peter Navarro said his comments were taken "wildly" out of context, sending U.S. stocks green by midday Tuesday.
The fears came after Navarro said "It's over" in a response to Fox News' Martha MacCallum question regarding the status of the trade deal.
After Navarro saw the stock market futures plunged by more than 400 points, Navarro walked back the statement, claiming his pessimistic quip "it's over" was unrelated to the trade deal, but referred instead to the erosion of trust between the U.S. and China in light of the way China handled Covid-19. President Trump, who had been putting China on blast for its lack of transparency on the pandemic, then confirmed on Twitter that the deal remains in place.
"It appears this administration is ever so confused as the President says one thing and [his] trade advisor says another," Peter Cardillo, a chief market economist at Spartan Capital Securities, wrote in a daily research note.
He continued, "We believe, these type's of uncertainties could lead to another round of unsettled markets in spite of the Fed's printing presses working at full speed."
Today, investors breathe a sigh of relief as stocks across the board rose. By midday, the Nasdaq Composite rose 1% to 10,165.62 points, the S&P 500 gained 25 points and the Dow Jones added 178 points.
One of the biggest gainers today at intraday was the biopharmaceutical company Palatin Technologies Inc., (NYSE: PTN) whose shares skyrocketed 27% to 66 cents per share on the news that it would test one of its investigational drugs as a treatment for the coronavirus.
Some Chinese U.S. listed firms also posted solid gains today, as the online dictionary provider Youdao, Inc. (NYSE: DAO) soared nearly 11% to 38.22 per American depositary share and the internet data center service provider 21Vianet Group, Inc. (Nasdaq: VNET) rose 8% to $23.27 per share.
Investors for the most part set aside the rise of 25,000 to 32,000 new Covid-19 cases per day.
But hey, if President Trump gets all 50 states to "slow the testing down," as he has recommended, then those numbers will fall. Not in reality, of course, but since when has reality interfered with the booming stock market?
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