Optimism on China trade talks drives U.S. stocks higher

Yesterday a tweet from President Donald Trump is the most important factor moving U.S. stocks higher.

In his tweet President Trump said he had had a productive conversation with Chinese President Xi Jinping on trade.  “Those discussions are moving along nicely,” Trump wrote on Twitter Thursday. “Also had good discussion on North Korea!”

Presidents Trump and Xi are scheduled to meet on the sidelines of the November 30-December 1 Group of 20 summit in Buenos Aires.

China Central Television said on Weibo on Thursday that, for his part, China’s X has said he is open to talking with Trump about trade and other issues during the G-20 meeting.

And finally, White House economic adviser Larry Kudlow said Thursday that Trump and Xi may be able to break the logjam on issues between the two countries during their meetings.

All this optimism that there is indeed some way out of the current U.S.-China trade war sent the Standard & Poor’s 500 up 0.76% as of 12:45 p.m. New York time. The Dow Jones Industrial Average climbed 0.83%. The NASDAQ Composite was had 1.20%. And the small cap Russell 2000 was higher by 1.44%.

Oil continued to fall with West Texas Intermediate dropping 2.79% to $63.49 a barrel and international benchmark Brent crude falling 2.73% to $72.99 a barrel.

The yield on the 10-year U.S. Treasury fell 1 basis point to 3.14% and the yield on the 2-year Treasury continued to hang at the 2.85% level.

The U.S dollar fell with the Dollar Spot Index moving lower by 0.73%.