U.S. markets extended a rally after dovish comments from a top Chinese official indicated that it would not retaliate, at least for now, on the latest increase in tariffs from the U.S.
Stocks were trading sharply higher by midday, helped by new comments from President Trump, who told Fox News Radio that talks had been scheduled Thursday "at a different level." He did not say what that means.
Earlier, Gao Feng, the spokesman for Ministry of Commerce Secretary, said in Beijing: “China has ample means for retaliation, but thinks the question that should be discussed now is about removing the new tariffs to prevent escalation of the trade war."
"The most important thing is to create the necessary conditions for continuing negotiations," Feng added, according to a translation by Bloomberg.
Those comments sent the Dow soaring 300 points at the open, which it was able to maintain into early afternoon, extending the volatility that has become the hallmark of what is typically among the quietest trading months of the year.
If the Dow were to close higher by 828 points between Thursday and Friday, it would end up higher for the month of August. The S&P would need to rise 92.5 points over the next two days to close up on the month.
Feng, the Chinese official, did not comment on President Trump's claim that the Chinese trade delegation called their American counterparts last weekend to express hopes of reaching a deal on tariffs. That statement came after a whipsaw few days in which China announced new tariffs on $75 billion U.S. goods. Trump retaliated by saying he would hike the tariff rates on Chinese exports, which sent stocks plunging.
As of Thursday afternoon, the Dow was trading back above where it was a week ago, before the latest tit-for-tat.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
