Wall Street regained Wednesday as investor optimism got a boost from U.S. President Donald Trump’s comments that discussions with China on an interim trade deal were going “very well.”
All three major U.S. stock indexes snapped a three-day dropping strip with a broad-based rally, led by financial, healthcare and tariff-sensitive know-how stocks.
Trump’s feedback supported a report that the world’s two largest economies have been closer to agreeing how many tariffs could be rolled back in a “part one” trade settlement.
Fears that a delay in negotiations might result in new tariffs taking effect as scheduled on December 15 have dampened market participants’ excitement in current days, with the major U.S. stock averages falling back from last week’s record highs.
Still, while stock markets get affected by daily trade developments, Doug Cote, senior portfolio manager at Voya Funding Management in New York, believes traders should not lose sight of solid underlying market fundamentals.
All 11 major industries of the S&P 500 ended the session in positive territory, with energy .SPNY enjoying the largest percentage gain, supported by a 4.0% leap in crude prices.
Alphabet surged 1.9% following its decision that Sundar Pichai would take the helm as CEO.
Shares of Johnson & Johnson hiked 1.6% after current checks showed its baby powder was asbestos-free. U.S. Food and Drug Administration inquiries reported trace amounts of the carcinogen in the product earlier this year.
Online travel platform Expedia Group soared 6.2%, among the top gainers on the S&P 500, after chair Barry Diller declared the resignations of the company’s chief executives and financial officials.