US Stocks Surge as China Signals Open Door for Talks

US Stocks Surge as China Signals Open Door for Talks

The US stock markets saw significant gains on Friday. At the close of trading in New York, the Dow Jones Industrial Average was calculated at 41,317 points, a 1.4% increase compared to the previous trading day. The broader S&P 500 index was up by 1.5% to around 5,685 points, while the Nasdaq 100 index, representing the technology sector, increased by 1.6% to approximately 20,103 points.

Just a few weeks ago, the solid US employment report released on Friday would have been negatively received by the markets, as it would have indicated a lower likelihood of interest rate cuts by the US central bank, the Federal Reserve. The Fed has been prioritizing the fight against inflation. However, investors reacted positively to the report, as it provided little evidence of negative effects from the US tariffs. Additionally, the positive reception was due to China’s signal that the door for negotiations remains open, provided the US suspends their tariffs.

The European common currency, the Euro, was slightly stronger on Friday night, with one Euro costing 1.1301 US dollars and one US dollar equivalent to 0.8849 Euros.

The gold price decreased slightly, with a fine ounce trading at 3,234 US dollars (-0.2%). This equates to a price of 92.00 Euro per gram.

The oil price, on the other hand, decreased: A barrel of North Sea crude oil was priced at around 61.62 US dollars on Friday night (22:00 UTC), which was 51 cents or 0.8% less than the closing price of the previous trading day.