US stocks rise again on trade talk optimism
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NEW YORK (AFP) - US stocks rose for a fourth straight session on Tuesday (Aug 21), with the S&P 500 hitting a record during the session, amid hopes the US is working towards defusing spiraling trade confrontations.
The S&P 500, the most broad-based of the three leading stock indices, got as high as 2,873.23, a new trading record, before slipping back to finish at 2,862.96, about 10 points shy of the all-time high set in January.
The Dow Jones Industrial Average advanced 0.3 per cent to end at 25,822.29, while the tech-rich Nasdaq Composite Index climbed 0.5 per cent to 7,859.17.
Investors were cheered by comments from Commerce Secretary Wilbur Ross that he plans to hold off on a final decision on whether to impose tariffs on auto imports while trade talks with Mexico, Canada and Europe are ongoing.
In addition, US and Chinese officials this week will hold the first talks since June on the ongoing dispute that has led to the exchange of tariffs on tens of billions of dollars in goods, with more possible.
"I am optimistic that the two sides will reach an agreement because there is so much at stake," Alan Skrainka, chief investment officer at Cornerstone Wealth Management, said of the US-China talks.
"Markets are anticipating what can go right." Analysts said the S&P 500's pullback from the record followed was normal for stocks, which sometimes require multiple attempts before new benchmarks are set.
"Investors are pretty optimistic that a new record will be set shortly," said Sam Stovall, chief investment strategist at CFRA Research.
Among the weaker groups, shares of TD Ameritrade and Charles Schwab fell 7.1 per cent and 2.4 per cent after JPMorgan Chase said it would launch a new program next week for free and discounted stock trades. JPMorgan finished with a gain of 0.6 per cent.
