By Michael Wursthorn and Michael Wursthorn The Wall Street Journal Biography @4BetterOrWurst Google+ [email protected] Ben St. Clair Updated July 12, 2018 4:43 p.m. ET 5 COMMENTS Stocks rebound from Wednesday’s fall China guides its currency lower
Surging shares of technology companies sent the Nasdaq Composite to a new record, as major indexes rebounded from a trade-fueled midweek stock selloff.
Tech firms led the stock market higher, as investors returned to the pro-growth investment strategy that has worked throughout much of the long-running rally. A major software-deal announcement appeared to underscore the buying spree, sending the S&P 500 technology sector up 1.8%, the most of the broad index’s 11 major sectors.
Meanwhile, investors momentarily put aside their brewing trade concerns a day after the Trump administration threatened tariffs on an additional $200 billion of products from China, including bicycles, refrigerators and pocketbooks. Beijing is currently reviewing plans to hit back beyond levies on imports, although no new policies have been announced.
“We don’t know how it’s going to pan out,” said Tom Martin, a senior portfolio manager at Globalt Investments. “But the market is understanding more and more that President [Donald] Trump isn’t bluffing.”
The tech-heavy Nasdaq Composite rose 107.30 points, or 1.4%, to 7823.92, surpassing its previous record set in June. The index notched its biggest percentage gain since June 1. The Dow Jones Industrial Average rose 224.44 points, or 0.9%, to 24924.89, while the S&P 500 gained 24.27 points, or 0.9%, to 2798.29.