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Wall Street rises as China's Xi Jinping eases trade worries; Dow gains 1.7%

The Dow Jones Industrial Average rose 428.9 points, or 1.79%, to 24,408, the S&P 500 gained 43.71 points, or 1.67%, to 2,656.87 and the Nasdaq Composite added 143.96 points, or 2.07%, to 7,094.30

April Joyner | Reuters  |  New York 

Wall Street
A trader works on the floor of the New York Stock Exchange in New York (Photo: Reuters

stocks climbed on Tuesday as investor concerns about rising trade tensions between the and eased after Chinese promised to cut import tariffs.

The technology sector, which would be particularly exposed to a negative impact from tense trade relations with China, provided the biggest boost to the 500.

Xi said will widen market access for foreign investors, a point of contention for Donald Trump's administration.

His comments buoyed global markets, which have been under pressure as and the threatened each other with billions of dollars in tariffs.

"With (Xi's comments), we got the signal for 'risk on' in trading today," said Mariann Montagne, at in Arden Hills, "That's why we've seen tech and biotech performing very strongly today."

shares added the most gains to the 500, rising 4.5% after began his testimony before and took questions from lawmakers. It was the biggest one-day percentage gain for the stock in nearly two years.

Zuckerberg's testimony aimed to strike a conciliatory tone in an attempt to blunt possible regulatory fallout from the privacy scandal engulfing his

The energy index had the highest percentage gain among the S&P's 11 major sectors, adding 3.3% as broke above $70 a barrel. 

The Industrial Average rose 428.9 points, or 1.79%, to 24,408, the 500 gained 43.71 points, or 1.67%, to 2,656.87 and the added 143.96 points, or 2.07%, to 7,094.30.

Only utilities and real estate, which are sensitive to interest rates, posted losses after prices rose more than expected in March, indicating that inflation is strengthening, which could push interest rates up further.

However, the increase in prices did not prompt broader concerns about future market performance.

"It's not enough to offset better expectations about the overall economy," said Kate Warne, at in

stocks will face a major test in coming weeks as first-quarter earnings pour in. , and will kick off the earnings season on Friday.

Analysts expect quarterly profits for 500 companies to rise 18.5% from a year ago, which would be the biggest gain in seven years, according to I/B/E/S.

shares jumped 17.1% after reports that the company had restarted merger talks with T-Mobile Inc. T-Mobile shares rose 5.7%.

Advancing issues outnumbered declining ones on the NYSE by a 3.16-to-1 ratio; on Nasdaq, a 3.93-to-1 ratio favored advancers.

The 500 posted six new 52-week highs and one new low; the recorded 53 new highs and 32 new lows.

Volume so far on exchanges was 7.14 billion shares, compared with the 7.33 billion-share average for the full session over the last 20 trading days.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, April 11 2018. 02:37 IST