U.S. stocks climbed Thursday ahead of a looming tariff deadline as investors weighed economic data and a potential de-escalation of some trade tensions with Europe.
Worries about trade have roiled financial markets for months as the U.S. and China, the world’s two biggest economies, remain locked in a trade dispute. The U.S. is scheduled to impose a first round of tariffs on $34 billion of Chinese imports Friday, and China is expected to counter with corresponding tariffs on U.S. imports.
“I think probably the further we get into this, the more we’ll gauge whether or not people are willing to sit down and negotiate or whether it’s going to deteriorate into something that turns much uglier,” said Bruce McCain, chief investment strategist at Key Private Bank.
The Dow Jones Industrial Average gained 181.92 points, or 0.8%, to 24356.74. The S&P 500 rose 23.39 points, or 0.9%, to 2736.61. The tech-heavy Nasdaq Composite added 83.75 points, or 1.1%, to 7586.43. All three indexes have risen in four of the past five sessions and booked their largest one-day point and percentage gains since early June.
Stocks took solace that trade tensions may be easing in Europe. Shares of car makers rose after a German press report said the U.S. proposed to stop its threats to impose tariffs on cars imported from the European Union if the EU lifts duties on U.S. car imports. Shares of General Motors