The Middletown Press (Middletown, CT)
Banks lead rally as stocks rise
Technology companies, banks and industrial companies all rose Thursday as investors continued to let go of some of their concerns about the trade dispute between the U.S. and China.
Big tech companies like Apple and Microsoft, the market's leaders over the last year, rose again. They've struggled recently as investors wondered if the trade tensions would spiral into a bigger dispute that affects global economic growth and stock prices. Industrial companies like Boeing and Caterpillar gained ground as well, with airlines climbing after Delta reported solid results in the first quarter. Bond prices dropped and interest rates rose, which helped banks.
The market has been jittery in March and April as investors worried about tariffs and other barriers to trade. Investors may have been pleased to hear that, according to a group of legislators, President Donald Trump asked members of his administration to explore the possibility of the U.S. rejoining trade talks with 11 Pacific nations. Those countries formalized a deal last month after Trump rejected an earlier agreement that involved the U.S. called the Trans-Pacific Partnership.
The S&P 500, a benchmark that is used by many index funds, has fallen for three of the last four weeks as the trade situation dominated Wall Street's attention. But the S&P is up 2.3 percent so far this week as investors felt new proposals by Chinese President Xi Jinping could help avert a trade war.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.83 percent from 2.79 percent. That helped banks because higher yields mean they can make more money from mortgages and other types of loans.