Dow, S&P 500 end at records on US-China trade deal optimism

Traders work on the floor at the New York Stock Exchange, Nov 6, 2019.
Traders work on the floor at the New York Stock Exchange, Nov 6, 2019.PHOTO: REUTERS

NEW YORK (AFP) - The Dow and S&P 500 finished at fresh records on Thursday (Nov 7) following Chinese comments that pointed to a potential removal of tariffs in the long-running trade war with the United States.

The Dow Jones Industrial Average ended up 0.7 per cent at 27,674.80, about 180 points above the all-time high of two days ago.

The broad-based S&P 500 gained 0.3 per cent to 3,085.18, while the tech-rich Nasdaq Composite Index advanced 0.3 per cent to 8,434.52.

Investors welcomed statements from Chinese officials that the two sides have agreed a plan to remove tariffs imposed on goods in stages if a preliminary "phase one" agreement announced last month is finalised.

However, the White House did not publicly comment on the claim and gains moderated following a Reuters report that described opposition to rolling back tariffs within the White House.

The pullback revealed continued doubt about a US-China trade agreement despite more conciliatory signs from both sides, said Karl Haeling of LBBW.

"Until this thing is nailed down, there is still a lingering concern that it could fall apart," he said.

"You're one tweet away, so to speak."

Haeling said investors were also cheered by a big jump in US Treasury yields, a sign of reviving confidence in global growth as recession fears ebbed.

 
 

Among individual companies, Expedia plunged 27.4 per cent after reporting disappointing third-quarter results due in part to higher spending on marketing.

Ralph Lauren surged 14.6 per cent as it reported better-than-expected results, with comparable sales rising in North America and Europe.