By Akanksha Rana
(Reuters) – An increase in technology bases lifted Wall Street on Thursday, when China sounded hopeful to resolve the years-long trade dispute with the United States, relieving the investor's fear of the risk of a recession.
China's Ministry of Commerce said both sides are discussing the next round of talks scheduled in September and hoped U.S. officials could cancel the planned additional tariff to avoid escalation, increase sentiment and increase global stock prices.
U.S. President Donald Trump said in a Fox News radio interview that the trade talks were scheduled for Thursday, "at another level."
Customs sensitive tech stocks () jumped 1
Chipmakers who draw a large portion of China's revenue also gained 2.4%, with the Philadelphia chip index ().
"We see a bit of a softer tone that gives investors hope," said Peter Cardillo, chief economist at Spartan Capital Securities in New York.
"Perhaps the September talks could lead to some fruitful conclusions and some progress that could lead to a lowering of tariffs or becoming serious about entering a trading service."
Top winners among the S&P 500 () companies were shares in Dollar General Corp (N :), up 9.1% after raising its full-year earnings forecast. Shares of Minor Rival Dollar Tree Inc (O 🙂 rose 2.1%.
At 9:52 am ET, the Dow Jones Industrial Average () was up 291.29 points, or 1.12%, at 26,327.39, the S&P 500 () was up 34.39 points, or 1.19%, at 2,922.33. Nasdaq Composite () increased by 116.10 points, or 1.48%, to 7,972.98.
The Trump administration on Wednesday announced its additional 5% tariff for $ 300 billion in Chinese imports and set collection dates September 1 and December 15. , which prompted hundreds of US companies to warn of price increases.
A number of companies, including Best Buy Co Inc (N 🙂 and Abercrombie & Fitch Co (N :), which reported results earlier in the day warned of the impact of tariffs on sales.
Shares in the US consumer electronics retailer slipped 9%, while the share of the teen retailer fell 12%.
Wall Street's main indices are on course to record their worst monthly performance since a sale in May, spurred by concerns that the Look-for-tat tariffs will lead the world economy into a recession.
This fear emerged after the US interest rate inversion deepened earlier this week to levels not seen since 2007. 6.85-to-1 ratio on the NYSE and a 4.37-to-1 ratio on the Nasdaq.
The S&P index recorded 20 new 52-week highs and no new lows, while the Nasdaq recorded 23 new highs and 12 new lows.
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