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Wall Street extends rally on US-China trade optimism; Dow rises 336 points

The news followed a report on Thursday that US Treasury Secretary Steven Mnuchin was considering lifting some or all tariffs imposed on Chinese imports

Reuters  |  New York 

US stocks fall as tech selloff spreads; Dow on track to end year in the red

US  stocks rallied on Friday, helping Wall Street's major indexes advance for the fourth consecutive week, as increased hopes the and would resolve their trade dispute lifted shares across sectors.

The market was boosted after a report said sought to raise its annual goods imports from the by a combined value of more than $1 trillion in order to reduce its trade surplus to zero by 2024.

The followed a report on Thursday that was considering lifting some or all tariffs imposed on Chinese imports. A Treasury denied Mnuchin had made any such recommendation.

A strong rally in January has put the benchmark on track for its best monthly gain since March 2016. The S&P 500 is now 8.9 percent below its Sept. 20 record close after dropping 19.8 percent below that level - near the 20-percent threshold commonly considered to confirm a bear market - on

"It's risk-on again," said Tim Ghriskey, at Inverness in "We've gotten an olive branch from regarding trade. Obviously there's been a very positive reaction from the market."

The <.DJI> rose 336.25 points, or 1.38 percent, to 24,706.35, the S&P 500 <.SPX> gained 34.75 points, or 1.32 percent, to 2,670.71 and the Composite <.IXIC> added 72.77 points, or 1.03 percent, to 7,157.23.

For the week, the Dow rose 2.96 percent, the S&P 500 gained 2.87 percent, and the added 2.66 percent. All three indexes registered their biggest four-week percentage gain since October 2011.

U.S. stock markets will be closed on Monday for the holiday.

Industrial stocks <.SPLRCI> rose 1.9 percent, the second-most among the S&P 500's major sectors, while the SE index <.SOX> climbed 2.3 percent. Both groups of shares have been sensitive to trade developments.

Technology stocks <.SPLRCT> were the biggest boost to the S&P 500, rising 1.5 percent.

Even with the session's gains, relatively light trading volume during the week indicated some investors were still waiting on the sidelines. On Friday, volume on U.S. exchanges was 7.99 billion shares, compared to the 8.44 billion average over the last 20 trading days.

"A lot of people have liquidated their positions coming into earnings so that they can react quickly as earnings come out," said Mark Otto, at GTS in

Analysts have lowered their fourth-quarter earnings forecast for S&P 500 companies to 14.2 percent year-over-year growth from 20.1 percent estimated on Oct. 1, according to IBES data from Refinitiv.

Shares of jumped 8.1 percent after the oilfield services provider reported quarterly revenue that beat estimates.

Shares of , however, fell 4.0 percent after the video-streaming company forecast lower-than-expected revenue for the first quarter.

Advancing issues outnumbered declining ones on the NYSE by a 2.93-to-1 ratio; on Nasdaq, a 2.26-to-1 ratio favoured advancers.

The S&P 500 posted three new 52-week highs and no new lows; the Composite recorded 32 new highs and 22 new lows.

 

(Reporting by April Joyner; Additional reporting by and in Bengaluru; Editing by and Chris Reese)

First Published: Sat, January 19 2019. 03:12 IST
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