- The Dow Jones leaped higher after the US and China appeared to agree to remove tariffs.
- Goldman Sachs is one of the leaders in the Dow Jones after a massive pop in US Treasury yields.
- However, analysts at ING are concerned that Trump’s trade war decision could come back to haunt markets.
The Dow Jones zoomed as much as 250 points higher on Thursday as the United States and China appeared to agree to roll back tariffs.
While the stock market has reveled in this news, concerns remain about whether China will be prepared to offer any further concessions, raising doubts that this is truly the end of trade war troubles for the Dow.
Dow Jones Surges as Trade War Fears Recede
While all three of the major US stock market indices rallied, the Dow Jones was the top performer. The bellwether index raced 203.71 points or 0.74% higher to 27,696.27. The DJIA had spiked as high as 27,774.67 earlier in the session.
A mutual agreement by the US and China to unwind tariffs sent the Dow Jones soaring. | Source: Yahoo Finance
The Nasdaq and S&P 500 also notched new all-time highs, rising 0.37% and 0.34%, respectively.
Confirming the risk-on tone, crude oil rallied more than 1.2%, while the price of gold was rocked by a massive surge in US Treasury yields. The sell-off in bonds saw the 10-year US Treasury yield hit the highest level since August.
Adding to the bullish tone for the economy, some positive jobs data contributed to the upward pressure on the Dow. The strong economy is important for markets because the consensus is that the Federal Reserve is likely to be more hesitant to cut interest rates from this point onward.