Stocks soar on US-China trade optimism

Stocks finished broadly higher Tuesday as investors grew more optimistic about the prospects for a resolution to the costly trade dispute between the US and China.

Technology, financial and health care stocks powered much of the rally, which gave the benchmark S&P 500 index its biggest gain this month and a three-day winning streak.

The wave of buying also drove a 372-point gain for the Dow Jones industrial average, ending the average’s four-day run of losses, and the Nasdaq composite rose 106.71 points.

President Trump said that he’s not inclined to extend the March 2 deadline for the trade talks with China, but might let it “slide for a little while” if talks go well.

Earlier, the White House had called March 2 a “hard deadline.”

Both nations are trying to reach a deal before March 1. That’s when additional tariffs will kick in.

“Any deal would help alleviate some of the uncertainty,” said Karyn Cavanaugh, senior markets strategist at Voya Investment Management. “The GDP hasn’t been dinged that much from the trade tariffs — it’s really been the uncertainty. It’s spilling over into business plans and that’s a hurdle for growth.”

Stocks got an early boost after lawmakers in Washington reached a tentative deal to avoid another partial government shutdown. The agreement on border security involves far less money for a wall than the White House wanted, and it’s not clear whether the president will support the deal.