Stocks jump to a record on Trump tweet saying US is ‘very close’ to China trade deal

Stocks jumped to all-time highs on Thursday after President Donald Trump said China and the U.S. were zeroing in on a trade deal, lifting hope that an agreement will be reached before a key deadline.

The Dow Jones Industrial Average traded 200 points higher, or 0.7%. The S&P 500 also surged 0.7% along with the Nasdaq Composite. Thursday marked the first time since Nov. 27 that the major averages hit record highs.

Trump said in a tweet both sides were getting “VERY close to a BIG DEAL with China. They want it, and so do we!”

Dow Jones later reported U.S. negotiators are offering to cancel new China tariffs and reduce existing levies on Chinese goods by up to 50% on $360 billion worth of imports. However, the report also said the original tariffs would be reimposed if China fails to carry out its end of the deal.

Trump’s tweet and the latest Dow Jones report come after Reuters reported that Trump was meeting with his top trade officials on Thursday ahead of a Sunday trade deadline. If an agreement is not reached by then, additional U.S. levies on Chinese products will take effect.

Reports from Bloomberg News and The Wall Street Journal suggested earlier in the week that the U.S. could delay those additional tariffs. However, National Economic Council Director Larry Kudlow said Tuesday the charges were “still on the table.”

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