China trade comments lift Wall Street as tech, industrials lead
NEW YORK - Wall Street's main indexes rallied on Thursday, led by the trade-sensitive technology and industrial sectors, as China sounded hopeful on trade negotiations with the United States, easing concerns that more combative stances could stoke a recession.
China's commerce ministry said both sides are discussing the next round of talks scheduled in September but progress would be determined by whether Washington could create favourable conditions.
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 additional details.
"Certainly (trade) is the fundamental point that is occurring right now, all this other stuff is just noise that allows either the computer programs or the certain participants in the marketplace to go ahead and push the market around one way or the other," said Keith Bliss, managing partner and CEO of IQ Capital USA LLC in New York.
"When the market pukes the way it has done lately, and the volatility really spikes, people should be in there buying the market with both hands."0
Heavyweight tech stocks with tariff exposure, such as Apple , up 1.59% and Microsoft, up 2.02%, boosted the technology sector by 1.87% and put it on track for its best day since Aug. 13.
Chipmakers, which draw a large part of their revenue from China, also gained, sending the Philadelphia semiconductor indexup 2.57%.
Industrial names that have also been highly correlated to trade progress, such as United Technologies, advanced, with the sector up 1.96%.
The Dow Jones Industrial Average rose 362.46 points, or 1.39%, to 26,398.56, the S&P 500gained 40.25 points, or 1.39%, to 2,928.19 and the Nasdaq Composite added 126.65 points, or 1.61%, to 7,983.54.
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 Best Buy Co Inc and Abercrombie & Fitch Co , reported results earlier in the day and warned of the impact from tariffs on their sales.
Shares of the U.S. consumer electronics retailer slid 8.16%, as one of the worst performing issues on the S&P 500, while those of the teen retailer tumbled 13.63%.
Dollar General Corp was the best performer among S&P 500 companies as its shares jumped 11.08% on an upbeat full-year profit forecast and the S&P retail index climbed 1.79%.
Advancing issues outnumbered declining ones on the NYSE by a 3.5-to-1 ratio; on Nasdaq, a 3-to-1 ratio favoured advancers.
The S&P 500 posted 26 new 52-week highs and no new lows; the Nasdaq Composite recorded 38 new highs and 47 new lows.