Alex Veiga and Stan Choe, Associated Press Published 4:16 p.m. ET Oct. 11, 2019
CLOSE (Photo: Richard Drew, AP)
Stocks marched higher on Wall Street Friday afternoon, riding investor optimism that the U.S. and China can make progress in their punishing trade war.
The broad rally drove the Dow Jones Industrial Average more than 470 points higher and had the S&P 500 index on track to close out its first weekly gain in four weeks.
Before meeting with Chinese Vice Premier Liu He for trade talks at the White House, President Donald Trump said, “Good things are happening.” Investors are hopeful the two sides can reach at least a limited deal on trade and tamp down tensions that have already dragged down manufacturing around the world.
One set of U.S. tariffs is scheduled to rise on Chinese products next week, and another round of tariffs is scheduled to take effect in December. The worry is that all the uncertainty about global trade may spill over into stronger areas of the economy, such as household spending, and cause a recession.
“The market is looking for anything here that shows forward progress,” said Ben Phillips, chief investment officer at EventShares. “If we get there, that’s enough for the market to say, ‘OK, we’re moving in the right direction and this isn’t going to be a disaster that stops the global expansion.’”
Treasury yields rose as investors felt less need