Stocks up despite new trade worries

Stocks posted a late rally to close mostly higher for a fifth consecutive day, led by gains in the financial and energy sectors. The dollar strengthened after U.S. 10-year note yields briefly climbed past 3 percent.

The S&P 500 and Dow finished just in the green after slumping midday, when Bloomberg News reported that President Donald Trump instructed aides to proceed with tariffs on about $200 billion more in Chinese products. Financial markets were whipsawed this week by conflicting reports on the status of trade relations between the world’s two largest economies. The Nasdaq closer lower, though up for the week.

“When the headlines hit, the knee-jerk reaction in the market is to either sell off or gain immediately,” Quincy Krosby, chief market strategist at Prudential Financial Inc, said by phone. “The president has had a couple of tweets suggesting he’s in no hurry to craft an agreement, but despite this, talks are apparently going to resume. And the question will be whether or not that leads to more negotiations.”

The push for additional tariffs is despite the U.S. Treasury secretary’s attempt to restart talks with Beijing to resolve the trade war, according to four people familiar with the matter.

Stocks also finished higher in Europe and Asia amid optimism for U.S.-China trade talks and action by Turkey and Russia to support their currencies that helped foster a positive mood. Miners and carmakers led the advance in the Stoxx Europe 600 Index, following a rally in most Asian benchmarks as they extended their rebound from the worst run of losses in 16 years. Oil posted its third straight weekly advance as traders keep watch on Hurricane Florence.