US stocks surged on Friday on hopes that China would reduce pressure on the US to rein in imports of Chinese-made goods.
The Dow Jones Industrial Average rose more than 500 points to close at 20,764.02, its highest level in more than six months, as investors cheered President Donald Trump’s trade push.
China has been tightening restrictions on imports of goods from the United States in the wake of the November election, and many US exporters are now worried about the effects of those restrictions.
The move came as Trump said he will make a decision on whether to allow imports of U.S.-made goods from China by the end of February.
The United States imports about half of its goods from Chinese-controlled companies, according to the International Trade Commission.
Trump’s push for China to do more to reduce its economic isolation was backed by Treasury Secretary Steven Mnuchin.
He told the Senate that he has spoken to President Xi Jinping by phone several times, and that both men have expressed their support for efforts to curb imports.
“Both President Xi and I have made clear that we want to do everything possible to support U.D.C. in its efforts to fight this trade war,” Mnuchin said.
“Our goal is to be able to sell U.K. products to China as quickly as possible, while continuing to do our part to help ensure the continued success of our businesses in this country.”
The Dow rose more from its low on Friday, after the Nasdaq index climbed 2.5% to 6,854.09.
The S&P 500 index of leading U.E. companies jumped more than 1%, while the Nasco index of global markets gained 0.7%.
The Dow, which had gained more than 10% over the last six months in part because of strong U.N. economic sanctions on Iran, also tumbled as investors reacted to Trump’s pledge to allow more Chinese goods to enter the United State.
“There’s a lot of anger in China over the sanctions,” said Stephen F. Schlesinger, president of Schlesingers International Consulting Group in Washington.
“And there’s a certain degree of desperation in China about the whole thing.”
The U. S. stock market rose more because of gains in the technology sector, which has been in decline for several years as the Chinese government has sought to tighten controls.
The Nasdaq rose nearly 2% to 4,859.69.
The Russell 2000 rose more 0.5%, while Russell 2000 futures climbed more than 2%.
The Nasco Index of North America, which tracks the broader U.F.O. markets, rose 1.5%.
The S.& ;amp;amp;AM, +0.00% Russell 2000 advanced 0.2%.
“It’s really been a selloff in a lot in the market,” said Schlesings.
“It feels like a correction.”
On Thursday, Trump called on China to reinstate imports from the U. States of Chinese goods, but it has been reluctant to do so.
China, which is a major buyer of U:s U. goods, is one of the world’s largest exporters.
The president, who has been outspoken about China’s trade practices, has made it clear he wants China to ease its grip on U.s markets.
Last week, the president also said he would decide whether to approve Chinese-built planes that are used to ferry U.U.S. military equipment to the military in the Middle East.
The decision has been opposed by the Pentagon.
“The U. F.O.’s have been in service in our country for 30 years.
We have no need to sell them out.
It’s a win-win situation,” Trump said on Thursday.
On Friday, he said he is considering an order allowing imports of American-made military gear.
“We have some really good planes that our military needs,” Trump told reporters at his golf club in Bedminster, New Jersey.
The U S. economy has grown at an annual rate of 2.9% since the end in January.
The unemployment rate rose to 7.9%, its highest since March 2008, while the number of jobless rose to 8.4 million.
The labor force participation rate, which measures the percentage of workers who say they have a job, increased to 62.4% from 62.1%.
The CPI, which gauges the purchasing power of a dollar, rose 0.3% to 1.65.
The benchmark index of manufacturing expanded at a 0.4%.
The services sector expanded at the fastest pace in four years, adding 6,300 jobs.
The wholesale trade index rose 0 and the services sector added 0.9%.
“We are seeing an extraordinary recovery in business confidence in the United Sates, with employers hiring again and new orders increasing,” said Brian Wieser, chief economist at BMO Capital Markets.
The economy, however, is still adding jobs. More than