(Reuters) – U.S. indexes gained on Thursday, led by marquee technology stocks hitting record highs and a rebound in industrials, 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 1.5 percent, leading the gainers among 11 major S&P sectors. Industrials rose 1.04 percent, while the defensive utilities sector, down 0.16 percent, was the only decliner.
CA Inc jumped 17.9 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 15.0 percent, leading S&P’s losers.
Boeing and Caterpillar, among the hardest hit by the recent trade dispute, rose about 1.4 percent helping send the Dow Jones Industrial Average index higher.
“The fears we had yesterday of a trade war, seem to have temporarily subsided, and investors are pushing trade tariffs aside for the moment as we enter into the earnings season.” said Andre Bakhos, managing director at New Vines Capital LLC.
“Ahead of earnings, investors are making bets on what seems to be very reliable and that is technology.”
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