Markets snap higher despite trade tiff

The latest on developments in financial markets (all times local):

11:45 a.m.

Traders shrugged off the onset of a tariff fight between the U.S. and China and sent stocks solidly higher.

The gains came even as Washington fired the first shot Friday in a trade conflict with China, imposing tariffs on $34 billion worth of Chinese imports. China responded in kind.

While the initial amounts of tariffs aren’t all that high, costs could soar across the board for business and consumers if the conflict escalates. Investors are hoping that won’t happen.

Instead, investors were encouraged by a solid pickup in hiring by U.S. employers last month.

The S&P 500 index rose 21 points, or 0.8 percent, to 2,758.

The Dow Jones Industrial Average climbed 116 points, or 0.5 percent, to 24,475. The Nasdaq composite increased 85 points, or 1.1 percent, to 7,672.

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9:35 a.m.

Stocks are opening higher on Wall Street following a solid jobs report, keeping the market on track for a weekly gain after two weeks of losses.

The gains came despite an escalation in trade tensions as the U.S. imposed tariffs on Chinese goods and China responded in kind.

Investors were pleased to see that U.S. employers kept up a brisk pace of hiring last month, without having to hike wages that much. Markets were watching to see if tight labor market conditions would force wages higher, a sign of inflation.

The S&P 500 index rose 5 points, or 0.2 percent, to 2,741.

The Dow Jones Industrial Average was little changed at 24,353. The Nasdaq composite climbed 33 points, or 0.5 percent, to 7,620.

Bond prices rose. The yield on the 10-year Treasury fell to 2.82 percent.

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