- The Dow, S&P 500, and Nasdaq resisted the temptation to extend their slump on Thursday.
- All three stock indices secured substantial gains as trade war developments trended in a positive direction.
- Meanwhile, the US economy continues to defy recession warnings.
The Dow snapped out of its single-day slump on Thursday, racing toward a triple-digit rally as the stock market basked in brighter trade war sentiment.
Adding to the bullish mood, an important data release came in stronger than expected, demonstrating that the US economy continues to hum along toward steady growth.
Dow, S&P 500, and Nasdaq Spike Toward Loftier Heights
Wall Street’s three most closely watched indices rose in unison on Thursday.
The Dow Jones Industrial Average surged 163.08 points or 0.59%, lifting the index to 27,655.64.
The Dow jumped more than 100 points on Thursday morning. | Source: Yahoo Finance
The Nasdaq followed closely behind, advancing 44.52 points or 0.53% to 8,455.14.
The S&P 500 lagged its peers, rising 13.55 points or 0.44% to 3,090.33.
The risk-on mood triggered a spike in bond yields, which rise as bond prices decline. The yield on the 10-year US Treasury note jumped to 1.89%, its highest point since mid-September. The 30-year Treasury bond ranged as high as 2.38%.
Gold, which tends to bounce on trade war volatility, declined nearly 0.5% to $1,485.
US Economy Hums Along as Trade War Outlook Brightens
The primary catalyst for Thursday’s rally was the stunning news that the US and China have agreed in principle to roll back tariffs as part of the long-awaited “phase one” trade agreement.
Risks remain, including the likelihood of delays.