US stocks rise on optimism over trade talks

9th January, 2019 10:23:01 printer

NEW YORK: Wall Street stocks rose for the third straight session on Tuesday, boosted by optimism over US-China trade talks.

The Dow Jones Industrial Average gained 1.1 percent to 23,787.45, reports AFP.

The broad-based S&P 500 advanced 1.0 percent to 2,574.41, while the tech-rich Nasdaq Composite Index climbed 1.1 percent to 6,897.00.

Trade talks in Beijing were set to continue on Wednesday in the first face-to-face meetings since US President Donald Trump and Chinese President Xi Jinping agreed to a tariff truce during a meeting in Argentina on December 1.

The Wall Street Journal reported the two sides were narrowing their differences, with Chinese officials offering greater purchases of US goods and services and Cabinet-level follow-up meetings expected later this month.

The latest stories suggest trade tensions “are not as dire as expected,” said Frances Donald, head of macroeconomic strategy at Manulife Asset Management.

“There are downside risks that continue,” Donald said, adding that the rebound over the last few sessions also showed investors realized “there are also upside risks to this market.”

US stocks have been on the upswing since Federal Reserve Chair Jerome Powell on January 4 signaled a more cautious approach to further interest rate hiking.

Apple gained 1.9 percent after Chief Executive Tim Cook expressed confidence in the company’s technology pipeline in spite of recent criticism, telling CNBC the company had been underestimated before.