© Reuters. A trader works on the floor of the New York Stock Exchange shortly after the closing bell in New York.
By Akanksha Rana
(Reuters) – A surge in tech stocks saw Wall Street rise Thursday as China hopes to resolve the longstanding trade dispute with the US, which alleviates investors' fear of a recession.
China's Commerce Ministry said both sides were discussing the next round of negotiations in September, hoping US officials could cancel the planned extra tariffs to avoid escalation, boosting sentiment and raising global stock prices.
US. President Donald Trump told Fox News in a radio interview that Thursday's talks are "on another level".
Customs-sensitive technology stocks () gained 1
Chip manufacturers, which receive a large part of their revenue from China, also rose, with the Philadelphia chip index () rising 2.4%.
"We see a bit of a milder tone that gives investors hope," said Peter Cardillo, chief economist at Spartan Capital Securities, New York.
"Perhaps the talks in September could lead to fruitful results and progress that could lead to a reduction in tariffs or serious developments over the conclusion of a trade agreement."
Among the S & P 500 () companies were Shares of dollars General Corp (N), which gained 9.1% after raising their full-year earnings guidance. Stocks of smaller competitor Dollar Tree Inc (O 🙂 rose 2.1%.
At 9:52 ET, the Dow Jones Industrial Average () rose 291.29 points or 1.12% to 26,327.39. The S & P 500 () rose 34.39 points or 1.19% to 2,922.33. The Nasdaq Composite () rose 116.10 points or 1.48% to 7,972.98.
The Trump administration announced Wednesday its additional 5% tariff on $ 300 billion on Chinese imports and set pick-up dates for September 1 and December 15, causing several hundred US companies to face price increases to warn.
A number of companies, including Best Buy Co Inc (N 🙂 and Abercrombie & Fitch Co (N :), previously reported results over the day warning against the impact of tariffs on their sales.
The US consumer electronics retailer's shares fell 9%, while the retailers' retailer fell 12%.
Wall Street's key indexes are on track to record their worst monthly performance since May's sell-off TIT FOR-TAT tariffs will drive the global economy into recession.
These fears came to the fore after the inversion of the US yield curve deepened earlier this week to a level not seen since 2007, a 6.85-to-1 ratio on the NYSE and 4.37-to-1 ratios. 1 Ratio on the Nasdaq.
The S & P Index posted 20 new 52-week highs and no new low, while the Nasdaq recorded 23 new highs and 12 new lows.
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