*By Alisha Haridasani* Investors responded enthusiastically Monday to the news that the United States and China were "putting the trade war on hold," with the Dow Jones Industrial Average crossing 25,000 for the first time in two months. The S&P 500 and the Nasdaq were also up after the United States announced over the weekend it would hold off on imposing tariffs on China to address the countries' trade imbalance. In return for the reprieve from tariffs, China announced it “will significantly increase purchases” of U.S. exports, specifically agricultural and energy goods, according to a [joint statement](https://www.whitehouse.gov/briefings-statements/joint-statement-united-states-china-regarding-trade-consultations/) from the two governments released by the White House. The two sides also agreed to “strengthen cooperation” on intellectual property protections, but crucial details about how much of what good China will purchase, and at what cost, remain undecided. The market rallied even without details of just how much China has committed to buying. "It's really the removal of negative news that drives markets higher, more so than the announcement of more positive news," said Mark Hackett, chief of investment research at Nationwide. Trump [touted](https://twitter.com/realDonaldTrump/status/998525737593376768) the deal in a series of tweets on Monday as "one of the best things to happen to our farmers in many years." The president also [assured](https://twitter.com/realDonaldTrump/status/998524172858019840) his followers: "Fair Trade, plus, with China will happen!" The apparent truce was the result of three days of trade negotiations in Washington, where American officials appear to have backed away from Trump's tough talk on tariffs, for the time being. Trump said last month that he would consider imposing import taxes on $150 billion worth of Chinese goods, and Beijing vowed to retaliate by levying its own tariffs on a range of American products, from denim to orange juice. The U.S. had also barred companies from doing business with the Chinese electronics company ZTE, punishing it for allegedly violating trade sanctions on North Korea and Iran. But last week, Trump agreed to help save the company, perhaps using ZTE's weakened position as a bargaining chip in the trade negotiations. It’s still unclear what the administration has decided to do with its penalties on ZTE. For the full interview, [click here](https://cheddar.com/videos/china-trade-war-fears-ease-and-the-dow-soars).

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More