Markets surge after Trump backs off new restrictions on foreign investments

Stock markets surged Wednesday following President Trump’s decision not to impose new executive restrictions on foreign investments.

The Dow Jones Industrial Average jumped by 280 points, or 1.1 percent, and the S&P 500 rose 22 points, about 0.8 percent, about two hours into the trading day.

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Earlier in the week, markets plunged on reports that Trump was planning to implement harsh restrictions on Chinese investments in sensitive American technology.

The administration announced Wednesday morning that it would not impose new restrictions, and instead will urge Congress to quickly send the White House legislation known as the Foreign Investment Risk Review Modernization Act (FIRRMA). Each chamber has passed a version of the bill, which would expand on existing tools for the Committee on Foreign Investment in the United States (CFIUS).

Since January, market volatility has become more commonplace, in part because of Trump’s aggressive trade moves and the responses they elicit from major trading partners. The president has already imposed tariffs on steel and aluminum, and on billions of dollars worth of goods from China.

China, the E.U., Mexico, Canada have imposed counter-tariffs in response.

Financial markets have hovered around the same level the past six months after making significant gains in 2017.