U.S. stocks closed higher for the first time in four sessions following a report that a phase-one trade U.S.-China trade deal was still in the works, helping to offset fears of a delay sparked a day earlier by President Donald Trump’s remarks.
What did the major benchmarks do?
The Dow Jones Industrial Average DJIA, +0.53% rose 146.97 points, 0.5%, to 27,649.78. The S&P 500 index SPX, +0.63% added 19.56 points, or 0.6%, to close at 3,112.76. The Nasdaq Composite Index COMP, +0.54% advanced 46.03 points, or 0.5%, to end the session at 8,566.67.
What drove the market?
U.S. stock-index benchmarks recovered some of the week’s lost ground after Bloomberg News, citing sources familiar, reported that Beijing and Washington were making progress toward a phase-one trade pact. The comments also helped to provide a lift to European equities.
Bloomberg’s report said any partial resolution on trade would be complete before another set of China tariffs kick in on Dec. 15. The news comes after stocks broadly slumped on Tuesday following a President Trump news conference in London, where he indicated there was “no deadline” when it comes to concluding the nearly two-year-old U.S.-China trade spat. He made those comments at a NATO meeting.
“While yesterday, the odds of an imminent trade deal seemed slim in the wake of the President’s hawkish words, we got upbeat reports regarding the state of the negotiations overnight,” wrote Ken Berman, strategist at Gorilla Trades, in a note.
“Even though the large-cap benchmarks are still well below last week’s all-time highs, the Volatility Index VIX, -7.27% plunged back below the 15 level while small-caps are keeping up with the broader market, which both point to healthy risk appetite,” he added.
Meanwhile, stocks shrugged