Stocks are closing at more record highs as traders hope that the US and China can make enough progress on trade to avoid new tariffs kicking in over the weekend. Banks and technology companies led the gains. The S&P 500 rose 26 points, or 0.9%, to 3,168. The Dow Jones Industrial Average rose 220 points, or 0.8%, to 28,131. The Nasdaq rose 63 points, or 0.7%, to 8,717. The S&P 500 and Nasdaq are at record highs. Traders dumped safe-play investments like utilities and real estate companies and moved money into riskier assets. Bond prices also fell, sending yields sharply higher.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Banks and technology companies powered stocks higher on Wall Street in afternoon trading Thursday after President Donald Trump said that the U.S. is getting close to a “big deal” in its trade war with China.
Traders were also encouraged by a Wall Street Journal report saying Washington has offered to slash existing tariffs and cancel new ones in exchange for more agricultural purchases and intellectual property protection. The rally had the S&P 500 on track for a record high and its second straight gain.
Wall Street has been watching closely for any developments in the ongoing trade negotiations all week as the nations head for another escalation. A new round of U.S. tariffs on Chinese goods is set to kick in on Sunday and raise the prices of popular products including laptops and cellphones. Investors are hoping that enough progress is made to prompt a delay from Washington.
“If we do see the tariffs removed, that's saying, ‘OK, China must be agreeing to things or we must be right there,'” said Ben Phillips, chief investment officer at EventShares. “That’s why the market is looking at tariffs as the bellwether to a trade deal.”
Banks helped lead the gains as bond prices fell, sending yields higher. Bank of America rose 3.2%. Higher yields allow banks to charge more lucrative interest rates on mortgages and other loans. The yield on the 10-year Treasury jumped to 1.89% from 1.79% late Wednesday. It's an unusually large rise and signals more confidence in economic growth.
Technology companies also made strong gains. The sector is one of the most sensitive to swings in trade because many of the companies rely on China for sales and supply chains. Cisco Systems climbed 3.1%.
Real estate companies, utilities and household goods makers lagged the market in another sign that investors were shifting money away from safe-play investments.
KEEPING SCORE: The S&P 500 index was up 0.7% as of 3:24 p.m. Eastern time. The Dow Jones Industrial Average rose 188 points, or 0.7%, to 28,099. The Nasdaq gained 0.6%. The Russell 2000 index of smaller company stocks climbed 1%.
Major stock indexes in Europe closed broadly higher.
TAKEOFF: Delta Air Lines rose 3.1% after the most profitable U.S. carrier gave investors a surprisingly good profit and revenue forecast for 2020. The company said it expects sustained demand for air travel and stable prices for jet fuel.
SPREADING LUV: Southwest Airlines gained 1.1% after it reached a deal with Boeing for compensation over the grounding of the 737 Max aircraft.
NOT SO STYLISH: Tailored Brands slumped 9.9% after the owner of Men's Wearhouse issued quarterly guidance that was below what analysts were expecting.
CASH REGISTERS RINGING? Friday’s retail sales report from the Commerce Department will offer investors a solid measure of the economy’s health in a week dominated by uncertainties over trade. Economists expect retail sales to rise in November. The measure gives more insight into consumer spending, which has been among the brighter spots in the economy helping to push growth.
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
