Stocks erase weekly losses as China trade-war tensions simmer
- All major US stock indexes rose more than 1.4% on Thursday as China set the yuan's fixing price at a stronger level than analysts and investors expected, which allayed worries around a further trade-war escalation.
- China also said its exports grew 3.3% in July from the same month last year, bouncing back from a 1.3% decrease in June and easing worries of a slowdown in global trade from tariffs.
- Meanwhile, President Trump attacked the Federal Reserve again on Thursday, writing in a tweet that the central bank has "called it wrong at every step of the way."
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Stocks erased weekly losses on Thursday after China continued to stabilize the yuan, alleviating worries of a currency war breaking out with the US. It also calmed nerves around the global trade conflict.China set the yuan's fixing price just above 7 yuan per dollar - a higher-than-expected level - prompting investors to exit safe haven assets like bonds and gold.Advertisement
Elsewhere, the yield on the 10-year Treasury note extended its weekly slump. Gold also dropped off its 6-year high and dipped below $1,500 during intraday trading.
Here's a look at the major indexes as of the 4:00 p.m. close:
- The S&P 500 rose 1.88%, to 2,938.09.
- The Dow Jones Industrial Average climbed 1.43%, to 26,378.19.
- The Nasdaq Composite jumped 2.24%, to 8,039.16.
Stocks experienced a sharp sell-off earlier in the week after China allowed the value of its currency to drop below 7 yuan per US dollar, sparking the initial fears of the trade war evolving into a battle of currencies. On Wednesday, Central banks in Thailand, New Zealand, and India took measures to prop up economic growth by lowering interest rates prompting a rally in global stocks. President Trump doubled-down on his criticism of the Federal Reserve on Thursday writing in a tweet that the central bank has "called it wrong at every step of the way." The president also said he was disappointed with the strength of the US dollar, which he has consistently supported weakening to make US exports cheaper and more competitive. Advertisement
Within the S&P 500, these were the largest gainers:
And the largest decliners:Warren Buffet-backed Kraft Heinz slid as much as 16% to a record intraday low after the company's delayed-earnings results missed expectations. The food conglomerate also announced $1.2 billion in business write-downs. Buffet owns about 27% of the company. Advertisement
Shares of Lyft rose as much as 9% after the ride-sharing company reported second-quarter earnings that surpassed Wall Street forecasts. The company recorded $867 million in revenue during the second quarter, with a loss per share of $0.68. Analysts expected revenue of $809 million and a loss per share of $1.74.
Every sector within the S&P 500 rose on Thursday, with both technology and energy stocks gaining more than 2%.
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