Stocks rebound as hopes rise that trade tensions will ease - wholesale gas grill
Wall Street ended up late in a turbulent week.
S. stocks rebounded on Friday after getting rid of the early recession triggered by the latest escalation in the US trade warS. and China.
After the US stock market fell, the market fell sharply in the early days. S.
When negotiators failed to reach an agreement, they raised tariffs on $200 billion worth of Chinese goods.
Hours later, speeches by President Donald Trump and Treasury Secretary Steven Mnuchin gave investors reason to be optimistic.
First of all, Mnuchin told CNBC that trade negotiations were "constructive", driving a rebound in the market.
Then, later on
In the afternoon, Trump said on Twitter that tariffs could be canceled and trade negotiations would continue.
"The afternoon rally has led to a broad reversal in the market, leaving only health care stocks to lose money.
Still, buying did not weaken the overall drop in stocks this week.
The benchmark S & P 500 ended with its worst weekly decline this year, 2. 2%.
"No one wants to sell too aggressively when things are resolved and markets rebound," J. said . "J.
Kinahan, chief market strategist at TD Ameritrade.
"It's possible to do this as long as they're still talking.
The S & P 500 index rose 10. 68 points, or 0. 4%, to 2,881. 40.
The broad index that fell earlier.
6%, most of the gains it achieved in April have been returned.
It also rose 14. 9% throughout the year.
The Dow Jones industrial average rose 114. 01 points, or 0. 4%, to 25,942. 37.
Fell 358 before.
Six more were added to Nasdaq. 35 points, or 0. 1%, to 7,916. 94.
The technology pound index rebounded after falling to 1 point. 9% earlier.
The Russell 2000 index for small-company stocks also closed higher after much of the day's decline. It picked up 2. 94 points, or 0. 2%, to 1,572. 99.
Most of Europe's major stock indexes closed higher.
Bond prices fell.
Yield of 10-
S. Treasury bonds rose to 2. 47% from 2.
Late Thursday 45%
Higher tariffs from the United StatesS.
On Friday, China's response was to take "the necessary response", which upset investors who had been hoping to resolve the dispute quickly.
Confidence in the results eased investor concerns this year, with the Fed more patient and economic data more robust.
All this helps push stocks to the hottest year in decades.
The trade war has put pressure on consumers and companies with higher commodity costs.
The latest tariff increase has raised tariffs on $ 10% of Chinese imports from 25% to 200 billion.
Trump said he could expand penalties for all Chinese goods shipped to the United StatesS.
The stock market reacted fiercely this week, but even after the turmoil this week, the S & P 500 remained within 2 points.
A record of 2% per cent was recorded in April 30.
This is because many investors continue to look forward to a final agreement between the United States and China, said Anthony sagrim, global market strategist at Ameriprise Financial.
Neither country would benefit from not reaching an agreement, he said.
During this period, the US governmentS.
The job market continues to grow and American households still have a better balance sheet than before the Great Recession.
"We recommend long-term investors to look at the noise and trade situation in the coming weeks, because the economy is strong and revenue growth should be better than expected," said Saglimbene . ".
"I don't think the market will fall by 10% just because we have raised these tariffs.
I expect it to drop by 5-10% if trade tensions escalate.
"However, things will not only become more complicated if the United StatesS. -
If the trade war were to intensify in other ways, China's negotiations would also break down.
For example, the United States may soon decide whether to impose tariffs on European car imports.
Although the market has been slow this year, it has not risen steadily until this week.
Before this week, the S & P 500 lost only four weeks this year, most of which were minor.
On top of that, in a year without major markets, it's basically in a downturnmoving news.
Investors have been cautiously focused on corporate earnings and have been surprised by robust performance, although after disclosing disappointing earnings or prospects, including Mylan, TripAdvisor and Wynn Resorts
This week's slump is particularly serious for tech stocks, which are far ahead of other markets this year.
These companies do a lot of business in China, and if the trade war continues, they will lose a lot.
The Nasdaq index, which accounts for a large proportion of tech stocks, fell 3% this week after a stronger run than the S & P 500 this year.
This week's decline is the third time this year and the biggest since the end of December.
The Nasdaq index is still rising. 3% in 2019.
Uber's debut in the stock market was unlucky. The giant ride-
As its share price fell to $41, hailing's much-anticipated stock offering turned over.
Shortly after the opening of the transaction, the volume was very large.
This is much lower than Uber's initial offer price of $45 per share.
This price is already at the low end of the target price range. It closed 7. Fell 6% to $41. 57.
After Lyft, Uber's main rival, went to market in March 29, investors were wary of it.
Lyft's initial share price was well above the IPO price, but fell in the first full day of trading.
The stock closed at $51 on Friday. 09, down 7.
Shares were 4% on the day, well below its $72 offering price.
Energy futures prices rose. Benchmark U. S. crude inched 0.
Fell 1% to close at $61. 66 per barrel.
International standard Brent crude oil closed 0.
Up 3% to $70. 62 per barrel.
Wholesale gasoline plus 0. 7% to $1. 99 per gallon.
Get 0 heating oil. 3% to $2. 05 per gallon.
Natural gas rebounded 0. 9% to $2.
62 cubic feet per 1,000 cubic feet. Gold rose 0. 2% to $1,287.
40 an ounce, silver added 0. 1% to $14.
79 per ounce, copper price 0. 1% higher than $2. 77 per pound.
The dollar rose to 109.
90 yen from 109 yen.
69 yen on Thursday.
The euro strengthened against the dollar. 1231 from $1. 1224.
Stan Joe, The Associated Press business writer, contributed to the report.