To give you a feel for how sensitive the stock market is to the trade negotiations with China, here’s the Dow this morning:
The first green arrow points to the thrust at the open on commentary out of China that this week’s talks went well. The second green arrow points to the market’s reaction to President Trump’s tweet that negotiations are “going very well!”. The red arrows point to what traders thought of the news that talks have ended, that divisions have “narrowed”, but that there’s no deal yet.
Surely, nobody thought that this week’s meeting would produce a deal, but my how the market is desperate for one!
Expect more friendly talk in the hours and days to come, and expect the market to be jittery, to say the least.