Wall St. rallies after China trade comments

By Chuck Mikolajczak NEW YORK (Reuters) - U.S. stocks rallied more than 1% on Thursday, buoyed by gains in the trade-sensitive technology and industrial sectors as China expressed hope on trade negotiations with the United States, easing concerns that rising tensions could stoke a recession. China's commerce ministry said both sides are discussing the next round of talks scheduled for September, but progress would be determined by whether Washington could create favorable conditions

Reuters August 30, 2019 02:06:40 IST
Wall St. rallies after China trade comments

Wall St rallies after China trade comments

By Chuck Mikolajczak

NEW YORK (Reuters) - U.S. stocks rallied more than 1% on Thursday, buoyed by gains in the trade-sensitive technology and industrial sectors as China expressed hope on trade negotiations with the United States, easing concerns that rising tensions could stoke a recession.

China's commerce ministry said both sides are discussing the next round of talks scheduled for September, but progress would be determined by whether Washington could create favorable conditions.

U.S. President Donald Trump said in a Fox News radio interview that trade talks were scheduled for Thursday "at a different level," but did not provide details.

Some analysts cautioned that the comments from China were light on substance, and pointed to month-end rebalancing on Friday as supportive of stock gains.

"It sounds to me like more of a continued slow-walking," said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta. "But clearly it is time to not ratchet things up further."

Heavyweight tech stocks with tariff exposure, such as Apple Inc , up 1.69%, and Microsoft , up 1.89%, boosted the technology sector by 1.73% for its best day since Aug. 16.

Chipmakers, which draw a large part of their revenue from China, also gained, sending the Philadelphia semiconductor index <.SOX> up 2.25%.

Industrial names that have also been highly correlated to trade progress, such as United Technologies , advanced, with the sector up 1.77%.

The Dow Jones Industrial Average <.DJI> rose 326.15 points, or 1.25%, to 26,362.25, the S&P 500 <.SPX> gained 36.63 points, or 1.27%, to 2,924.57 and the Nasdaq Composite <.IXIC> added 116.51 points, or 1.48%, to 7,973.39.

Still, the three main indexes were on course to log their worst monthly performance and first monthly decline since a selloff in May, on worries the intensified trade battle between the world's two largest economies will lead to a global recession.

The Trump administration on Wednesday made official its additional 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15, prompting several hundreds of U.S. companies to warn of price hikes.

A number of companies, including electronics retailer Best Buy Co Inc and teen apparel retailer Abercrombie & Fitch Co , reported results earlier on Thursday and warned of the impact from tariffs.

Shares of Best Buy slid 7.99%, making it one of the worst performing issues on the S&P 500, while those of Abercrombie tumbled 15.10%.

Dollar General Corp was the best performer among S&P 500 <.SPX> companies, rising 10.68% on an upbeat full-year profit forecast. The S&P retail index <.SPXRT> climbed 1.67%.

Advancing issues outnumbered declining ones on the NYSE by a 3.23-to-1 ratio; on Nasdaq, a 2.69-to-1 ratio favored advancers.

The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 40 new highs and 59 new lows.

About 6.01 billion shares changed hands on U.S. exchanges, compared with the 7.23 billion daily average over the last 20 sessions.

(Reporting by Chuck Mikolajczak; Editing by Leslie Adler)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.