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US Market climbs to new record on trade deal optimism

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The US stock market finished session at record high on Thursday, 07 November 2019, as investors chased for value buying after the world's two largest economies reportedly agreed to remove existing trade tariffs. At closing bell, the Dow Jones Industrial Average gained 182.24 points, or 0.66%, to 27,674.80, a new all-time closing high. The Nasdaq Composite grew 23.89 points, or 0.28%, to 8,434.52, meanwhile the S&P 500 grew 8.40 points, or 0.27%, to 3,085.18.

Market sentiment rebounded after China said it had agreed with the United States to cancel tariffs in phases, a key consideration in reaching a deal to end a trade war that has crimped economic growth and roiled markets.

A spokesman for China's Ministry of Commerce told reporters these roll-backs could happen even before a "phase one" trade deal is signed.

No timetable was indicated, but a phase one deal is widely expected to include a U. S. pledge to scrap tariffs scheduled for Dec. 15 on about $156 billion worth of Chinese imports, including cellphones, laptop computers and toys.

Investors were also eyeing developments in Europe, after the European Central Bank issued an update on economic and monetary developments that predicted sluggish but positive economic growth in the second half of 2019.

Qualcomm Inc shares rose 6.3% after the company reported quarterly results that topped expectations. The company's results were driven by strength in Qualcomm's licensing business.

Shares of Cardinal Health Inc. rose 3.4% after reporting a $4.92 billion loss in the fiscal first quarter, due to an agreement in principle reached in October to pay $5.56 billion to settle pending and potential opioid lawsuits.

Shares of Expedia Group Inc. plunged 27.4% after the travel website reported worse-than-expected earnings results.

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

First Published: Fri, November 08 2019. 09:17 IST