Stocks climb on report U.S. may pare back tariffs
NEW YORK >> U.S. stocks climbed Thursday after the Wall Street Journal reported that U.S. officials could reduce the new tariffs on Chinese imports as part of trade negotiations between the two countries. It was the latest in a series of potentially conflicting updates on the trade dispute.
Citing sources close to the discussions, the Journal said Treasury Secretary Steven Mnuchin and other officials are willing to lift some or all of the import taxes the U.S. announced last year. They’re aiming to convince Chinese leaders to make deeper reforms. However, U.S. Trade Representative Robert Lighthizer reportedly doesn’t support the idea, and the proposals haven’t been presented to President Donald Trump.
Stocks wobbled earlier following reports late Wednesday that the U.S. might bring criminal charges against Chinese technology giant Huawei over allegations it stole trade secrets. However, China’s government said the top trade envoys from both countries will meet in Washington at the end of this month, a possible sign of progress in negotiations
Technology, industrial and health care companies made some of the largest gains, and makers of chemicals and other basic materials jumped.
After three months of big swings that were linked to trade talk developments, investors have adjusted to the uncertainty, said Gina Martin Adams, the chief equity strategist for Bloomberg Intelligence. She said investors want hard data and clear answers about what international trade will look like.
“These issues between Huawei and trade have been a constant source of volatility and uncertainty that is weighing on sentiment,” she said. “Any permanence on the issue is going to be deemed an improvement.”
The S&P 500 index rose 19.86 points, or 0.8 percent, to 2,635.96. The Dow Jones Industrial Average jumped as much aYs 267 points following the report about the potential tariff cuts. It finished with a gain of 162.94 points, or 0.7 percent, at 24,370.10. The Nasdaq composite added 49.77 points, or 0.7 percent, to 7,084.46.