Wall Street opened higher on Tuesday after Chinese President Xi Jinping promised to cut import tariffs, soothing investor concerns about rising U.S.-China trade tensions. Ten of the 11 major S&P sectors were higher, with technology and energy stocks leading the gainers. The three major U.S. indexes were all up more than a percent with all 30 Dow components in the positive territory. In his first public comments since the trade dispute with the Trump administration started, Jinping vowed to open the country’s economy and said China would raise the foreign ownership limit in automobile, shipbuilding and aircraft sectors “as soon as possible”.
His comments buoyed global markets, which have been under pressure as China and the United States threatened each other with billion in tariffs and investors feared that protectionist measures would hit global economic growth. Energy stocks gained as oil broke above $70 a barrel on easing trade war fears between the world’s two largest economies. [O/R]. The expectation was this could have gone one of two ways: he could have been aggressive about U.S. tariffs or been conciliatory and it feels like he’s more conciliatory,” said Art Hogan, chief market strategist at Wunderlich Securities in New York.Shares of major U.S. automakers such as General Motors (GM.N), Ford (F.N), Fiat Chrysler (FCAU.N) and Tesla (TSLA.O) were up between 2 percent and 3 percent following Xi’s comments.