Stocks open higher on hope for North Korea talks
Wall Street is getting an unexpected bounce from North Korea.
The Dow opened 120 points higher on Tuesday after South Korea’s national security chief Chung Eui-yong said North Korea is willing to talk to the United States about giving up its nuclear weapons.
Chung said the two Koreas would hold a summit next month, the first in more than a decade.
Growing tensions with North Korea have concerned investors.
“No question this is great to hear,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, wrote in a note to clients.
Fears of a trade war are also dimming on Wall Street. The Dow gained 336 points on Monday to snap a four-day skid.
House Speaker Paul Ryan and top GOP leaders’ opposition to President Trump’s planned tariffs have calmed investors — for now.
“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan,” Ryan spokeswoman AshLee Strong said in a statement Monday morning. Stocks rose shortly after the statement.
Trump announced on Thursday that his administration would impose a 25% tariff on steel imports and a 10% tariff on aluminum, sparking a 491-point sell-off to close out the week.
Trump escalated fears on Friday by writing on Twitter, “Trade wars are good, and easy to win.” Asked about Ryan’s position on Monday, Trump told reporters, “No, we’re not backing down.”
Top American allies, including Canada and the European Union, have pledged to retaliate if Trump follows through on the plan. White House trade adviser Peter Navarro said on CNN’s “State of the Union” on Sunday that no countries will be excluded from the tariffs.
— CNN’s Joshua Berlinger and Jungeun Kim contributed to this report.
CNNMoney (New York) First published March 6, 2018: 7:53 AM ET