Home >market >stock-market-news >US markets: Nasdaq, Dow Jones, S&P 500 rise on hopes of easing US-China trade war

New York: US stocks reversed course to trade higher on Thursday after a Financial Times report that further US tariffs on Chinese imports would be paused spurred optimism that the two countries could resolve their trade dispute. Wall Street’s major indexes rose on the Financial Times article that US trade representative Robert Lighthizer told a group of industry executives the next tranche of tariffs on Chinese imports has been put on hold.

The Dow Jones Industrial Average rose 204.4 points, or 0.81%, to 25,284.9, the S&P 500 gained 25.47 points, or 0.94%, to 2,727.05 and the Nasdaq Composite added 118.65 points, or 1.66%, to 7,255.04.

After five days of losses, shares of Apple Inc. also gained 2.6%, helping the S&P 500 technology sector gain 2.5%.

“We’d be trading sideways for quite a while... but we’ve rallied on that headline," said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

“If we’re stopping imposing tariffs and are talking, it’s a positive."

Earlier, the S&P 500 and the Dow had declined as disappointing results from retailers as well as a weak outlook from KB Home dragged down consumer discretionary stocks.

Shares of Cisco Systems Inc. advanced 5.2% after the network equipment maker’s quarterly revenue and earnings beat analyst estimates. Cisco was among the biggest boosts to the S&P 500 and the Nasdaq.

Department store operator Dillard’s Inc. tumbled 14.0% after its third-quarter earnings missed analyst estimates. Likewise, its peer J.C. Penney Co. Inc. reported same-store sales below analyst expectations.

The gloomy results from Dillard’s and J.C. Penney also cast a pall over Walmart Inc. shares, which fell 2.2% despite the world’s largest retailer beating same-store sales estimates and raising its full-year outlook.

J.C. Penney shares, however, shed earlier losses to climb 13.1% after chief executive officer Jill Soltau gave indications of her plans to turn a profit.

KB Home slumped 16.5% after the company cut its fourth-quarter revenue forecast. Shares of other homebuilders, including PulteGroup Inc., Toll Brothers Inc. and Lennar Corp, also fell.

Shares of PG&E Corp. extended their losing streak to a sixth day, hitting a 15-year low of $17.71 after the utility company warned that it could face liability in excess of its insurance if its equipment caused the deadly Camp Fire in northern California. PG&E shares were last down 30.4%.

Advancing issues outnumbered declining ones on the NYSE by a 1.30-to-1 ratio; on Nasdaq, a 2.07-to-1 ratio favoured advancers.

The S&P 500 posted five new 52-week highs and 19 new lows; the Nasdaq Composite recorded 16 new highs and 142 new lows.

Reuters’s Sruthi Shankar in Bengaluru contributed to this story.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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