NEW YORK – News that the U.S. and China are open to negotiating to avert a trade war put investors in a buying mood Monday, giving the market its best day in more than two years and erasing about half of its huge losses last week. Technology companies accounted for much of the broad rally, which powered the Dow Jones industrial average to a gain of nearly 670 points. Microsoft was the biggest gainer in the 30-company Dow and the Standard & Poor's 500 index, climbing nearly 8 percent. Banks also notched solid gains, benefiting from a pickup in bond yields. Retailers, consumer goods companies and health care stocks were among the big gainers.
"Naturally, America wants an early conclusion to what to do about its trade deficit (with Japan). Of course, they are concerned about the mid-term elections and may say various things," said a ruling party lawmaker well-versed in U.S.-Japan economic ties, one of eight officials and lawmakers interviewed by Reuters who declined to be identified because of the sensitivity of the subject.
Department of Agriculture officials warned that a protracted shutdown would jeopardize the programs' funding sources, saying that states had adequate funds to support school meal programs through the month of February and into March. That led nonprofit organizations like the School Nutrition Association to urge Congress and President Donald Trump to resolve the impasse before any lapse in school meal funding occured.
BIARRITZ, FRANCE – U.S. President Donald Trump on Monday said he thinks the United States will be able to reach a fair trade agreement with the European Union without imposing threatened tariffs on car imports, offering a potential lifeline to German carmakers. Trump said it had been difficult negotiating with the European Union on the trade issues, but struck an upbeat tone on the prospects for a broad agreement with Brussels. "We're very close to maybe making a deal with the EU because they don't want tariffs," Trump said at a news conference at the end of the G7 summit in Biarritz, France. "I think we're going to make a deal with the EU without having to go that route." The U.S. president's comments came amid reports that export-dependent Germany is facing a recession.