Wall Street bounced back up on Monday with U.S. stocks gaining as tensions over a trade war between the United States and China eased after reports that the two countries were negotiating.
The Dow Jones Industrial Average gained 1.38 percent to 23,856.99.
The S&P 500 rose 1.14 percent to 2,617.85.
The Nasdaq Composite gained 1.18 percent at 7.074.96.
Tech stocks came under pressure from Facebook whose shares fell 3 percent hitting a session low of $149, losing $100 billion after becoming embroiled in scandal and under investigation for data privacy issues by the U.S. Federal Trade Commission.
Microsoft gained 5.4 percent.
Intel gained 3 percent after it was upgraded to ‘market perform’ by Raymond James brokerage.
Fears of Trade War Abates
Fears of a trade war gripped stock markets last week after President Trump imposed tariffs of up to $60 billion on Chinese imports. This was in addition to the restrictions of imports on steel, aluminium, solar panels and others. Fear gripped the markets with all three main U.S. indexes steeply declining, the worst since January 2016.
Reports that the U.S. and China are negotiating on Monday resulted in an upturn in the markets with an easing of fears that there would not be an escalation of trade tensions.
According to news reports the U.S. has asked China to:
• Cut tariffs on U.S. autos
• More access to the Chinese financial sector
Li Keqiang, the Chinese Premier said that:
• Foreign and domestic firms would be treated equally
• Would strengthen intellectual property rights and not force foreign firms to transfer technology