Dow rallies 300 points at open on hopes for trade deal

Published: Oct 11, 2019 9:33 a.m. ET

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Markets Reporter

U.S. stocks rose sharply at the start of trade Friday as investors awaited the outcome of a second day of trade talks between the U.S. and China, with President Trump set to meet China's Vice Premier Liu He later in the day. Investors are increasingly hopeful for an agreement that will avoid tariff increases from 25% to 30% on $250 billion in Chinese imports set for Oct. 15 after the president said Thursday's talks went "really well." The Dow Jones Industrial Average DJIA, -0.95% rose 313 points, or 1.2% to about 26,813 and the S&P 500 index SPX, -0.39% added 33 points, or 1.1% to about 2,971. The Nasdaq Composite index COMP, -0.83% rose 101 points, or 1.3%, to roughly 8,052. The Wall Street Journal reported that a deal could include promises for greater Chinese purchases of U.S. agricultural goods, a pact to deter the devaluation of the Chinese yuan, a suspension of planned tariff increases by the United States and a relaxing of export bans against Chinese telecom giant Huawei Technologies Co. Looking ahead, investors will be watching for a reading of the University of Michigan's consumer sentiment index, due at 10 a.m. Eastern Time, for signs of the health of American consumers, a key driver of U.S. economic strength.