U.S. stock indexes on Friday rose sharply higher as investors focused on continued progress in trade negotiations between China and the U.S. in the final day of its weeklong round of discussions. The Dow Jones Industrial AverageDJIA, +1.33% rose 280 points, or 1.1%, at 25,724, the S&P 500 index SPX, +0.79% advanced by 0.8% at 2,768, while those for the Nasdaq Composite Index COMP, +0.35% climbed 0.3% to 7,450. For the week, the Dow was on pace for a 2.3% rise, the S&P was set for a 2.2% advance, while the Nasdaq was set to gain 2.2%, for the five-day stretch, as of Thursday’s close. U.S.-China trade talks wrapped up Friday in Beijing, with reports negotiators remained deadlocked over key issues, but were set to extend their discussions in to next week in Washington – viewed as a sign that both sides were eager to reach a deal ahead of March deadline. Markets also were responding to a flurry of early morning data: The cost of imported goods fell in January for the third straight month, down 0.5% from December, led by lower oil prices. The Empire State manufacturing index, which gauges the health of the New York State manufacturing sector rose 4.9 points in February to 8.8, above economists expectations of 7.6. U.S. industrial production fell in January for the first time in eight months, the Federal Reserve said Friday. In corporate news, shares of PepsiCo Inc. PEP, +3.21%gained after snack and beverage giant issued fourth-quarter earnings and revenue that were in line with expectations.
The market was boosted after a Bloomberg report said China sought to raise its annual goods imports from the United States by a combined value of more than $1 trillion in order to reduce its trade surplus to zero by 2024.
The news followed a report on Thursday that U.S. Treasury Secretary Steven Mnuchin was considering lifting some or all tariffs imposed on Chinese imports. A Treasury spokesman denied Mnuchin had made any such recommendation.
A strong rally in January has put the benchmark S&P 500 index on track for its best monthly gain since March 2016. The S&P 500 is now 8.9 percent below its Sept. 20 record close after dropping 19.8 percent below that level – near the 20-percent threshold commonly considered to confirm a bear market – on Christmas Eve.
Stocks rose on Tuesday as investors remained cautiously optimistic Washington and Beijing could move forward on a trade deal. However, a decline in bank shares kept a lid on the market’s overall gains.
The Dow Jones Industrial Average gained 166 points, led by Boeing. The S&P 500 rose 0.4 percent as energy outperformed. The Nasdaq Composite climbed 0.3 percent as Amazon jumped 1 percent.
Shares of other tech giants like Apple, Facebook, and Google-parent Alphabet also traded higher. Theese gains add to the so-called FAANG trade’s sharp rise since late December. Through Monday’s close, Facebook shares have surged 12.2 percent since then, while Amazon has rocketed 24.7 percent. Alphabet shares, meanwhile, are up 35 percent in that time period.
Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average was higher Monday after the blue-chip index surged Friday following stronger-than-expected jobs data and dovish comments from Federal Reserve Chairman Jerome Powell.
- General Electric Co. (GE – Get Report) rose 4.4% Monday following a report that suggested Apollo Global Management LLC (APO – Get Report) could be preparing a $40 billion bid for the company’s airplane leasing division.
- Eli Lilly & Co. (LLY – Get Report) reached an agreement to buy biopharmaceutical company Loxo Oncology Inc. (LOXO) for $235 a share in cash, or about $8 billion.
Stocks were rising on Monday, Jan. 7, following Friday’s rally that was fueled by much stronger-than-expected U.S. jobs data and dovish messages from the Federal Reserve.
“I think the only explanation is that we’ve had this really nice rebound,” Craig Johnson of Piper Jaffray told ABC News. “We sold off really hard, and then we had a relief rally. It’s not tax law selling anymore, that’s already done, that was over in December, and Chinese industrial production was really weak.”
“Institutional investors are talking about China and what’s going on there rather than what’s going on in Washington,” Johnson added.
Investors were also jittery after The New York Times reported that U.S. trade representative Robert Lighthizer was urging President Trump to hold the line on trade negotiations with China, signaling that the escalating trade war could get worse.
The Dow Jones Industrial Average booked a dramatic reversal, ending higher after trading sharply lower on the session Thursday. The Dow DJIA, +1.14% closed 1.1%, or 258 points, at 23,136, on a preliminary basis, after being down by as many as 611 points, or 2.7%, at session lows. The day’s trade follows a historic surge for the Dow that saw it rally by more than 1,000 points, marking the largest single-session point gain in history. The S&P 500 indexSPX, +0.86% also turned positive on the day, ending up 0.9% at 2,488. The Nasdaq Composite Index COMP, +0.38%eked out a modest gain, rising 0.4% to finish at 6,579, based on the preliminary closing levels. The swings occurred within the final hour of trading in a see-saw day. On Wednesday, the Dow ended with a gain of 1,086.25 points, or 5%, at 22,878.45. The S&P 500 soared 5% to end at 2,467.70. The Nasdaq rose 5.8% to 6,554.36.
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Source: Asian Stock Markets – CNNMoney
The Dow Jones Industrial Average plunged about 2%, or more than 450 points, to its lowest level in 14 months. The Nasdaq Composite shed 1.6% and briefly dipped into a bear market, defined as a fall of more than 20% from recent peaks, for the first time since the financial crisis. The S&P 500 fell 1.6%.
Despite pressure from President Trump and members of his administration, the Federal Reserve is expected to raise interest rates for the fourth time this year on Wednesday.
Fed officials have signaled they’re ready to raise their key borrowing rate to the highest level in a decade — to a range of 2.25 percent to 2.50 percent.
The decision stands to affect rates on all kinds of borrowing, from home mortgages to credit cards. The 30-year mortgage rate in the past year climbed from 3.95 percent to a peak of nearly 5 percent in November — a seven-year high. It has since dropped to 4.63 percent.
The Fed last raised rates in September. Since then, the U.S. economy has given off mixed signals. The job market remains strong, with unemployment at the lowest level in nearly 50 years. Growth clocked in at a solid 3.5 percent in the third quarter.