U.S. Stocks Rise After Trump's Positive Comments on China Trade Talks. Tesla Gains 7%
U.S. stocks opened higher Monday after President Donald Trump said that U.S.-China trade negotiations were going well. Investors also braced for a key Federal Reserve meeting this week.
Top U.S. and Chinese officials for a second day discussed tariff rates and the imminent deadline for a divestment of Chinese-owned social media TikTok. In a Truth Social post, Trump said the meeting between officials had been positive and that a deal “was also reached on a ‘certain’ company that young people in our Country very much wanted to save,” potentially referring to TikTok. The U.S. will go ahead on its TikTok ban if China does not let go of its demands for reduced tariffs and tech restrictions, Reuters reported on Monday, citing a a senior U.S. official with knowledge of negotiations.
Tesla shares jumped 7% after CEO Elon Musk disclosed an insider purchase of the stock worth about $1 billion, his largest buy in the open market ever and his first significant purchase since 2020. Traders took the buy as a vote of confidence by Musk in the company, which is attempting to turn its focus towards robotics as electric vehicle competition has intensified.
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