China eases some tariffs; stocks rise
Stocks on Wall Street notched broad gains Wednesday as investors drew encouragement from China’s move to exempt some U.S. products from a recent round of tariffs.
Technology, healthcare and communication services stocks powered much of the rally. The benchmark Standard & Poor’s 500 index, which had been essentially flat since Friday, is on track for its third straight weekly gain.
Bond yields continued to climb. Oil prices fell, and investors also continued to favor smaller-company stocks.
Wednesday’s push into technology stocks marked a reversal from the prior two days, when traders bid up energy, financials and other sectors that had sold off in recent weeks. The tech sector is particularly sensitive to fallout from the U.S.China trade war because many big companies, such as Apple, manufacture products in China.
“Today you have a little bit of a rotation back,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “You’re getting some movement that trade may not be as bad as we think, with China relieving some of the restrictions on its own tariffs.”
The S&P 500 rose 21.54 points, or 0.7%, to 3,000.93. It’s the first time the index has finished above 3,000 points since July 30.
The Dow Jones industrial average rose 227.61 points, or 0.8%, to 27,137.04. The techheavy Nasdaq advanced 85.52 points, or 1.1%, to 8,169.68.
The Russell 2000 index of smaller-company stocks outpaced the broader market, jumping 32.72 points, or 2.1%, to 1,575.71.
Bond prices fell. The yield on the 10-year Treasury rose to 1.75% from 1.70%.
Apple was among the big gainers Wednesday as investors snapped up technology stocks. Shares in the iPhone maker climbed 3.2%. Chipmaker Intel gained 1.9%.
Healthcare and communications stocks also made strong gains. Medtronic rose 1.1%. AT&T climbed 3.1%.
The financial sector wobbled between small gains and losses after pulling out of an early slide. Wells Fargo added 1.1%. Real estate stocks finished flat.
GameStop plunged 9.8% after the video game retailer slashed its full-year profit forecast following a disappointing second quarter. The company continues to struggle as it competes with online game sellers.
Benchmark crude oil fell $1.65 to $55.75 a barrel. Brent crude oil, the international standard, fell $1.57 to $60.81 a barrel. Wholesale gasoline fell 2 cents to $1.57 a gallon. Heating oil fell 3 cents to $1.90 a gallon. Natural gas fell 3 cents to $2.55 per 1,000 cubic feet.
Gold rose $4.10 to $1,494.40 an ounce.