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Wall Street rises as Trump softens tariff plan

Reuters  |  NEW YORK 

By Sinead Carew

NEW YORK (Reuters) - The three major U.S. stock indexes closed higher on Thursday after appeared to soften his stance on trade tariffs, easing trade war fears that had had the market on edge for a week.

Trump announced import tariffs on and aluminum but said and would be exempt and that other countries could apply for exemptions, although details of when they would be granted were thin.

"This is something that bites less than what the rhetoric was last week," said Chuck Carlson, at in Hammond,

"It's a softer play on the idea than the original 'sky was falling' reaction last week when it sounded like it was going to be across the board, no ifs, ands or buts, and everybody was just going to get hammered," he said.

The <.DJI> rose 93.85 points, or 0.38 percent, to close at 24,895.21, the 500 <.SPX> gained 12.17 points, or 0.45 percent, to 2,738.97 and the Composite <.IXIC> added 31.30 points, or 0.42 percent, to 7,427.95.

Ahead of the that trickled out from the in the last hour and a half of the trading day, the had zig-zagged in a tight range between positive and negative territory as investors were uncertain about what Trump would say.

Worries that the tariffs would ignite a global trade war have dominated markets since he announced the plan last Thursday, and the exit of late Tuesday intensified the concerns.

But not everybody was pleased with the latest trade

shares fell 7.5 percent after the as it had been seen benefiting from higher prices if the tariffs were put in place. Shares in Corp fell 2.9 percent while closed down 4 percent.

Michael O'Rourke, at in Greenwich, was still concerned about how Trump's policies could affect global trade.

"He dialed it back a little bit, but they're still tariffs, and we're still going in the wrong direction from a policy perspective if you're a markets-focused globalist. I wouldn't be surprised if he comes out with different tariffs on other things," he said.

The was the only one of the S&P's 11 sectors to end the day lower, with a 0.1 percent drop as declined. [O/R]

Advancing issues outnumbered declining ones on the NYSE by a 1.38-to-1 ratio; on Nasdaq, a 1.15-to-1 ratio favored advancers.

The 500 posted 26 new 52-week highs and one new low; the Composite recorded 157 new highs and 22 new lows.

Volume on U.S. exchanges was 6.38 billion shares, compared to the 7.65 billion average for the last 20 trading days.

(Additional reporting by and in New York and Sruthi Shankar in Bengaluru; Editing by and James Dalgleish)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 09 2018. 03:43 IST