NEW YORK — A gauge of global stocks rose for an eighth straight day to a six-week high and benchmark government bond yields advanced on Friday as signs of progress in trade talks between the United and China, as well as a solid report on U.S. retail sales, allayed recession worries.
Stocks on Wall Street climbed, buoyed by a string of positive signals on the trade war between the world’s two largest economies. Financials were among the best performers, aided by the rise in bond yields.
The benchmark S&P 500 index stood about 0.5% from its record closing high set on July 26.
U.S. President Donald Trump said on Thursday he was potentially open to an interim trade deal with China, although he stressed an “easy” agreement would not be possible. That was followed up on Friday by China’s official Xinhua News Agency announcing the country would exempt some U.S. agricultural products, such as pork and soybeans, from additional tariffs.
Solid reports on U.S. retail sales and consumer sentiment added to the optimism and eased concerns about economic growth, although the Federal Reserve was still widely expected to cut rates at its policy meeting on Wednesday. The Bank of Japan is to follow with its announcement on Thursday.
“We have the continued warming of relationships over the trade talks. And we have the consumer still strong with retail sales, and those two just added fuel to the fire,” said Ellis Phifer, market strategist at Raymond James in Memphis, Tennessee.
The Dow Jones Industrial Average rose 94.51 points, or 0.35%, to 27,276.96, the S&P 500 gained 7.32 points, or 0.24%, to 3,016.89 and the Nasdaq Composite added 11.81 points, or 0.14%, to 8,206.28.
European shares were higher for a fourth straight session, although gains were muted after a rise of