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Wall Street continued its winning streak on Friday as high-level delegations of the United States and China are set resume trade talks next week. Moreover, Mexico expressed its willingness to resolve bilateral trade issues with the United States by the middle of next week. Optimistic views from several fronts on global trade-related concerns have restored investor’s confidence in risky assets like equities. Consequently, all the major stock indexes closed in the green.
The Dow Jones Industrial Average (DJI) closed at 25,669.32, gaining 0.4% or 110.59 points. The S&P 500 Index (INX) was up 0.3% to close at 2,850.13. The Nasdaq Composite Index (IXIC) closed at 7,816.33, increasing 0.1%. A total of 6.06 billion shares were traded on Friday, lower than the last 20-session average of 6.53 billion shares. Advancers outnumbered decliners on the NYSE by 2.45-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.41-to-1 ratio. The CBOE VIX decreased 6% to close at 12.64.
How Did the Benchmarks Perform?
The Dow ended at 25,669.32, marking its highest close since Feb 26. Notably, 23 components of the 30-stock blue-chip index closed in the green, while six finished in the red and one remained unchanged. Tech-heavy Nasdaq Composite also managed to finish in the green for the second straight trading day.
The S&P 500’s gain was led by a 1% increase in Real Estate Select Sector SPDR (XLRE), 0.8% hike in Consumer Staples Select Sector SPDR (XLP) and 0.7% gain Materials Select Sector SPDR (XLB). Notably, ten out of 11 sectors of the benchmark index closed in the green while one ended in the red.
Both American Tower Corp. AMT and Simon Property Group Inc. SPG, the largest two companies in the Real Estate Select Sector SPDR increased 1%. Both the companies carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Trade-related Concerns Eased
High-level delegations of the United States and China will hold a round of negotiations next week to reach some kind of an agreement related to tariff-related issues. Notably, both countries have imposed $50 billion of tariffs on each other escalating the fear of a global trade war.
On Aug 17, The Wall Street Journal reported that both the U.S. and Chinses negotiators will try their best to reach to a middle path which will eventually pave the way for a summit between President Donald Trump and Chinese leader Xi Jinping in November.
Meanwhile, Mexico’s economy minister, Ildefonso Guajardo stated that he is hopeful to resolve all outstanding bilateral issues on the North American Free Trade Agreement (NAFTA) by the middle of next week. Notably, NAFTA is facing vulnerability since June when the Trump administration imposed tariffs on metals imported from both Mexico and Canada.