Stocks rose after the White House announced that President Trump would meet with Chinese leader Xi Jinping next week in Asia.
The meeting has been anticipated for weeks as a potential path to de-escalating trade tensions that have flared up throughout the year amid higher tariffs. The S&P 500, which had already been higher on the day, gained momentum after the announcement, and finished 0.6% higher. The Nasdaq composite was up 0.9%, while the Dow industrials rose 0.3%.
Brent crude futures surged 5.4%, their biggest gain since June 13, while European natural gas prices also climbed. Shares in oil companies such as Exxon Mobil, BP and Shell advanced.
The sanctions on Lukoil and Rosneft are meant to show Trump’s patience with Russia is wearing thin, as he looks for ways to pressure President Vladimir Putin into a Ukraine peace deal.
“The key question is whether these sanctions are enough to deter buyers of Russian oil, specifically China and India,” said Warren Patterson, head of commodities strategy at ING.
The EU approved a new sanctions package that will ban imports of Russian liquefied natural gas starting next year.
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