Stocks closed higher for a third consecutive session Thursday, with the Dow up by triple digits after upbeat earnings from two blue chips, as investors weighed the latest developments on the trade front after President Donald Trump appeared to target Chinese telecommunications group Huawei Technologies Co. with an emergency declaration against threats to U.S. technology.
Meanwhile, economic data on the U.S. labor and housing markets came in better than expected, offsetting worries over trade.
How did the major indexes fare?
The Dow Jones Industrial Average DJIA, +0.84% rallied 214.66 points, or 0.8%, to 25,862.68, and the S&P 500 index SPX, +0.89% climbed 25.36 points, or 0.9%, to 2,876.32. The Nasdaq Composite Index COMP, +0.97% rose 75.90 points, or 1%, to 7,898.05.
What drove the market?
Global equities have proven resilient after the Trump administration fired a fresh salvo in a trade spat with China late Wednesday, issuing an executive order that bans telecom equipment from countries considered “foreign adversaries.” The move appeared to target Huawei, which has been under pressure from the White House for months.
Additionally, the Commerce Department said that it would add Huawei to a list of entities that engage in “activities contrary to U.S. national security and/or foreign policy interests,” which could greatly restrict its purchases of crucial American-made chips.
Other corners of the Trump administration were offering reasons for markets to hope that a U.S.-China trade deal of some sort was still in the offing. Treasury Secretary Steven Mnuchin said Wednesday that U.S. officials would “most likely” meet with Chinese delegates again in Beijing after each side fired off trade tariffs at the other earlier this week.
A spokesman for China’s Commerce Ministry said the country opposes other