NEW YORK (Reuters) – U.S. stocks climbed on Thursday as top technology names hit record highs and industrials rebounded, offsetting worries 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 index rose 1.6 percent, the day’s best-performing sector, and the group is now leading year-to-date gains among sectors. Industrials rose 1.1 percent, while the defensive utilities sector, which had outperformed recently, was down 0.1 percent.
Helping the tech sector is the view that those companies may be more immune to potential trade dispute problems, said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
But also, she said, “The consensus is that negotiations will resume and there will be some sort of agreement between the U.S. and China. It could be naive, but that seems to be an emerging consensus within the market.”
The United States late Tuesday 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.
Boeing and Caterpillar, among the hardest hit by the recent trade dispute, rose, boosting the Dow.
Within tech, CA Inc jumped 18.3 percent after chipmaker Broadcom announced a surprise $18.9-billion deal to buy the business software company. Broadcom slumped 14 percent.
The Dow Jones Industrial Average rose 204.44 points, or 0.83 percent, to 24,904.89, the S&P 500 gained 21.84 points, or 0.79 percent, to 2,795.86 and the Nasdaq Composite added 98.70 points, or 1.28 percent, to 7,815.31.