The Middletown Press (Middletown, CT)
Stocks up after anti-tariff push
U.S. stocks rose, while Treasuries pared gains as signs mounted that President Donald Trump could be dissuaded from enacting tariffs that may spark a trade war.
The S&P 500 advanced for a third day as comments by the president’s allies — including House Speaker Paul Ryan, White House economic adviser Gary Cohn and Sen. David Perdue — have added to pressure on Trump to ease off implementing the most severe protectionist policies. Chipmakers rallied after a positive research note from Goldman Sachs and materials producers gained amid a rise in metals prices.
Investors remained focused on the potential for tariffs on steel and aluminum from the Trump administration that has caused America’s largest trading partners to warn of a backlash. An apparent diplomatic breakthrough on the Korean Peninsula added to risk-on sentiment, leading the dollar to slide against peers. Treasuries were flat after CVS Health Corp. kicked off the third largest corporate-debt financing ever.
Meanwhile, emergingmarket stocks rose after five days of declines, and Europe’s peripheral bonds advanced. Italian stocks advanced alongside the country’s bonds as the potentially lengthy process of forming a new government got under way. Bank of Japan Governor Haruhiko Kuroda appeared to dial back some of his recent perceived hawkishness, giving further impetus to the risk-on mood.