The S&P 500 and Dow Industrials are higher after President Donald Trump said the United States may not have to impose further tariffs on Chinese goods, but falling shares of Nvidia Corp dragged down the Nasdaq.
All three US stock indexes had been lower in early trade as an underwhelming outlook from Nvidia weighed on the tech sector.
US stocks moved higher after Trump said China seemed willing to make a deal on trade.
‘The market is paying attention very closely to anything surrounding trade,’ said Veronica Willis, investment strategy analyst at Wells Fargo Investment Institute in St. Louis. ‘(A trade deal) would boost expectations for global growth, which would ultimately be good for stocks.’
But lagging Nvidia shares kept the Nasdaq in negative territory.
Nvidia’s shares tumbled 18.8 per cent after the chipmaker pointed to the decline in cryptocurrency mining as the cause of its declining sales. The chipmaker’s shares also weighed on the Philadelphia SE Semiconductor index, which declined 1.2 per cent.
Facebook shares also dropped 3.0 per cent upon renewed concerns that the company could face regulatory scrutiny following a New York Times report on Wednesday about the company’s attempts to deflect criticism of its handling of Russian propaganda.
The Dow Jones Industrial Average rose 123.95 points, or 0.49 per cent, to 25,413.22, the S&P 500 gained 6.07 points, or 0.22 per cent, to 2,736.27 and the Nasdaq Composite dropped 11.16 points, or 0.15 per cent, to 7,247.87.
Comments from Richard Clarida, newly appointed Federal Reserve vice chair, that US interest rates were nearing the central bank’s estimates of a neutral rate also lent support to stocks, investors said.
For the week, however, all three indexes posted losses. The S&P 500 fell 1.61 per cent, the Dow lost 2.22 per cent, and the Nasdaq shed 2.15 per cent.
S&P 500 energy stocks rose 1.1 per cent as oil prices recovered from sharp losses this week on expectations that OPEC and its allies would agree to cut output next month.
S&P 500 utility stocks also jumped, advancing 1.3 per cent, as PG&E Corp shares surged 37.5 per cent. Statements from the California Public Utilities Commission raised hopes that the embattled company could be spared from bankruptcy if it were found liable for the state’s deadliest-ever wildfire.
Consumer discretionary stocks fell 0.5 per cent. Continuing a gloomy week for retailers, shares of department store operator Nordstrom Inc tumbled 13.7 per cent after quarterly same-store sales missed estimates and the company reported charges from a credit card problem.
Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favoured advancers.
The S&P 500 posted 27 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 26 new highs and 109 new lows.
Volume on US exchanges was 8.18 billion shares, compared to the 8.61 billion average over the last 20 trading days.