President Donald Trump’s unexpected delay of tariffs on Chinese goods is encouraging investors. | Source: AP Photo/Evan Vucci
Major stock market indices saw a large spike in aftermarket futures trading with the S&P, Nasdaq, and others indicating a solid opening following a move by U.S. President Donald Trump to delay tariffs.
In a tweet, President Trump stated that a planned increase in tariffs on $250 billion worth of Chinese goods will be postponed until October 15 at the request of Chinese Vice Premier Liu He.
“At the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of goodwill, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th.”
The move, considered to be a “rare” decision by strategists made by the Trump administration, has led to an improvement in the sentiment around the trade dispute ahead of the next round of trade talks, alleviating significant pressure from the stock market.
The Nasdaq and S&P indicate an implied opening with a 26-point and 2.5 point gain respectively, reflecting the positive stance of investors in both the U.S. and the global stock market.
Move welcomed by China says analysts, which may further improve stock market sentiment
Hu Xijin, the editor-in-chief of Chinese and English editions of the Global Times, said that the decision is welcomed and that it is likely to create “good vibes” before trade talks scheduled next month.