Stocks shake off 'heavily priced in' trade war escalations between the US and China
Reuters / Richard Drew
Stocks rose Tuesday as markets shrugged off major escalations in the US-China trade war. The dollar and Treasury yields edged higher.
Dow Jones industrial average: 26,256.21 +194.09 (0.74%)
S&P 500: 2,905.70 +16.90 (0.59%)
Nasdaq Composite: 7,956.11 +60.32 (0.76%)
The US imposed tariffs on $200 billion worth of Chinese products Monday night. China placed tariffs on $60 billion worth of American products in a tit-for-tat response. Financial markets offered a fairly muted response as the tariffs were already "heavily" priced in, said FXTM research analyst Lukman Otunuga.
After the US said it could move forward with a trade deal excluding Canada, NAFTA talks are set to resume. Canadian Foreign Minister Chrystia Freeland and US Trade Representative Robert Lighthizer are expected to meet Wednesday. Progress may be an uphill battle as the US demands Canada lower trade barriers in its dairy market, which has been a nonstarter for Prime Minister Justin Trudeau.
More data shows US benefits growing faster than wages. Costs of benefits for private employers was up 3% in June from a year earlier, the Labor Department said. Meanwhile, the salary and wage costs rose 2.7%.
The Department of Justice opened a criminal probe into Tesla. The electric-car marker said it is cooperating and had received a voluntary request for documents in the investigation, which comes after CEO Elon Musk said last month that Tesla had secured funding to go private. Shares of the company fell 3.38%.
And a look at the upcoming economic calendar:
Housing starts and existing home sales numbers are out in the US.
The UK releases inflation figures.
European Central Bank President Draghi speaks in Paris.
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