(Reuters) – U.S stocks gained on Thursday, led by marquee technology stocks hitting record highs and a rebound in industrial stocks, as optimism of a strong earnings season offset fears about a U.S-China trade war.
FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 11, 2018. REUTERS/Brendan McDermid
Facebook, Microsoft and Amazon hit all-time intraday highs and along with Apple and Alphabet powered the S&P 500 and Nasdaq higher.
The technology sector rose 1.3 percent, leading the gainers among the 11 major S&P sectors. Industrials rose 1 percent.
CA Inc jumped 18.1 percent, the most on the S&P 500, after chipmaker Broadcom announced a surprise $18.9 billion deal to buy the business software company. Broadcom slumped 16.8 percent, leading S&P’s losers.
Boeing and Caterpillar, among the hardest hit by the recent trade dispute, rose about 1.3 percent helping send the Dow Jones Industrial Average index higher.
Industrials led a slide on Wall Street on Wednesday after the U.S. threatened to impose tariffs on $200 billion worth of Chinese goods. China said on Thursday the two countries have not been in touch about restarting talks and while it does not want a trade war, it would fight if necessary.
Weekly jobless claims hit a two-month low last week, the Labor Department said, in a sign that labor market conditions remained robust in early July.
The consumer price index (CPI) barely rose in June, but the underlying trend continued to point to a steady buildup of inflation pressure that could keep the Federal Reserve on a path of gradual interest rate increases.
“The markets are telling us the economy is good and the earnings are going to be okay, but there is that element of risk, and that is an elevating trade war,”