August 29, 2019 / 2:14 PM / 19 days ago

US STOCKS-Tech boosts Wall Street after China trade comments

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window)

* Apple, Microsoft, chip stocks boost tech

* All 11 major S&P 500 sectors in the black

* Best Buy falls as FY same-store sales forecast disappoints

* U.S. dollar chains shares up after raising profit forecasts

* Indexes up: Dow 1.12%, S&P 1.19%, Nasdaq 1.48% (Updates to open)

By Akanksha Rana

Aug 29 (Reuters) - A rise in technology shares lifted Wall Street on Thursday, as China sounded hopeful of a resolution to the long-standing trade dispute with the United States, easing investor fears of the risk of a recession.

China’s commerce ministry said both sides are discussing the next round of talks scheduled in September and hoped U.S. officials could cancel the planned additional tariffs to avoid an escalation, boosting sentiment and driving global stocks higher.

U.S. President Donald Trump said in a Fox News radio interview that trade talks were scheduled for Thursday, “at a different level”.

Tariff-sensitive tech stocks jumped 1.68%, boosted by gains in Apple Inc and Microsoft Corp.

Chipmakers which draw a large part of their revenue from China also gained, with the Philadelphia chip index up 2.4%.

“We are seeing a bit of a softer tone that’s giving investors hope,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“Perhaps the September talks might bring some fruitful conclusions and some progress that could result in lowering tariffs or getting serious about concluding a trade deal.”

Top gainers among S&P 500 companies were shares of Dollar General Corp, up 9.1% after raising its full-year profit forecast. Shares of smaller rival Dollar Tree Inc rose 2.1%.

At 9:52 a.m. 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. The Nasdaq Composite was up 116.10 points, or 1.48%, at 7,972.98.

The Trump administration on Wednesday made official its additional 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15, prompting several hundreds of U.S. companies to warn of price hikes.

A number of companies, including Best Buy Co Inc and Abercrombie & Fitch Co, that reported results earlier in the day warned of the impact from tariffs on their sales.

Shares of the U.S. consumer electronics retailer slid 9%, while those of the teen retailer tumbled 12%.

Wall Street’s main indexes are on course to record their worst monthly performance since a selloff in May, spurred by worries that tit-for-tat tariffs will drive the global economy into a recession.

Those fears came to the fore after the U.S. yield curve inversion deepened earlier this week to levels not seen since 2007.

Advancing issues outnumbered decliners for a 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 low, while the Nasdaq recorded 23 new highs and 12 new lows. (Reporting by Akanksha Rana, Sruthi Shankar and Shreyashi Sanyal in Bengaluru; Editing by Anil D’Silva and Shounak Dasgupta)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below