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US-STOCKS-MARKETS
US stocks end higher on partial trade deal, Dow +1.2%
NEW YORK, Oct 12, 2019 (BSS/AFP) – Wall Street stocks finished higher on
Friday as US-China trade negotiations yielded a partial deal that included a
halt to tariffs scheduled for next week.
The Dow Jones Industrial Average ended at 26,816.59, up 1.2 percent but
well below session peaks as initial details about the agreement emerged in
the final moments of the session.
The broad-based S&P 500 gained 1.1 percent to 2,970.27, while the tech-
rich Nasdaq Composite Index advanced 1.3 percent to 8,057.04.
Analysts said the stock market’s pullback in the final moments likely
reflected disappointment that the interim agreement did not go further, and
left in place existing tariffs.
The announcement “sounds a little more limited than we were hoping for,”
said FTN Financial’s Chris Low. “Nevertheless it is really good news.”
The pact, characterized by US officials as the first phase in
negotiations, capped a rollercoaster week for stocks, with the market
retreating early in the week on doubts about the talks, but reversing course
midweek as the signs from both sides became more conciliatory.
Beijing and Washington have been at loggerheads for more than a year, with
US President Donald Trump emphasizing trade relations with China as a central
tenet of his “America First” agenda.
Sectors with especially strong gains Friday included industrials,
materials and technology.
The biggest winner in the Dow was Caterpillar, which has been seen as
especially vulnerable in the trade war and finished 4.7 percent higher. Apple
and 3M also notched significant gains.
BSS/AFP/HR/0940