U.S. stocks opened higher on Tuesday for the third consecutive day, lifted by talks between North and South Korea and the increasing amount of those opposing U.S. President Donald Trump’s steel tariff.
The Dow Jones Industrial Average opened up 102.1 points higher on Tuesday. The Nasdaq Composite Index opened 37.33 points higher. The S&P 500 Index opened 9.2 points higher, increasing to 1.1 percent over a two-day rebound period since Monday.
Many analysts are calling the stronger opening a technical rebound after fears of North and South Korea begin to diminish and Europe’s opposition against Trump’s steel and aluminium tariffs, following House Speaker Paul Ryan’s call for Trump to reconsider.
Ryan urged Trump to reconsider the tariff, along with other Republican party members, saying that it could possible ignite a trade war between nations. Following Ryan’s comments, the European Union on Tuesday threatened the U.S. with their own tariffs against U.S. goods such as jeans, bourbon, motorcycles and agricultural goods of up to 25 percent, matching Trump’s 25 percent steel tariff, according to Bloomberg.
“Investors may have been rattled by the prospect of a trade war after Donald Trump’s recent tariffs announcement, but equity markets are once again recovering as it becomes clear that the US President does not have the full backing of his party of this one,” said Craig Erlam, senior market analyst at OANDA, in a note to clients.
The Korean Stock Exchange Index closed 1.5 percent higher on Tuesday on the diplomatic talks between the North and South Korea to take place in a reported summit in April. South Korean President said North Korea is open to talks of possibly suspending its nuclear weapons if the safety of Kim Jong Un’s regime is guaranteed and discussing relations with the U.S., according to Bloomberg.
Asian stock markets also rose following the reports. Hong Kong’s Hang Seng Index rose by 2.09 percent and Japan’s Nikkei Index was up 1.79 percent on Tuesday.