The main Wall Street indexes ended the trading session with growth after US President Donald Trump said talks with China on trade would continue and his relationship with his Chinese counterpart, Xi Jinping, remained strong.
The blue-chip index Dow Jones Industrial Average finished the day with an increase of 114.01 points, reaching a level of 25,942.37 points after dropping 358 points in the previous session. The broader S&P 500 ended its four-day losing streak and rose by 0.37% to 2,881.40. The technology index Nasdaq Composite advanced by 0.05% to 7,916.94 points after the technological shares were pushed back from the bottom.
The indexes reached their highest level during the session after Trump’s tweet late Friday and closed close to these levels. The US president noted that trade talks with China are “frank and constructive”. He added that the new 200 billion USD tariffs hike on Chinese imports “could be canceled or may not be abolished” in the future.
The major Wall Street indexes began to offset their losses in the middle of the day after Finance Minister Steven Mnuchin said trade talks with China were over for the day and were “constructive”. Chinese Deputy Prime Minister Liu He also said talks have been “fairly good”.
Companies that rely on resolving the trade dispute remain under some pressure. Chip manufacturers suffered severely because of the fears of escalating the war, with VanEck Vectors Semiconductor ETF marking its worst week since the beginning of the year with a fall of nearly 6%.
Shared travel company Uber made its IPO on the New York Stock Exchange on Friday at a price of 42 USD per share. The company’s stock closed the day with a decline of nearly 8%.
Despite the rise on Friday, the S&P 500 marks its worst week since the beginning of the year with a fall of nearly 2.2%.
Meanwhile, the consumer prices rose by 0.3% in April, below the 0.4% level expected by economists. The core inflation, which excludes volatile food and energy prices, rose 0.1% in April, below the 0.2% consensus estimate.
Atlanta Fed President Raphael Bostic said in a meeting with business leaders in Meridian, Mississippi, that the central bank might have to cut interest rates if the new round of tariffs placed on Chinese goods causes consumer spending to suffer.
Some Wall Street analysts believe that investors need to prepare for a long commercial battle.
On bond markets, yields on 10-year and 30-year US government bonds rose to 2.473% and 2.889%, respectively.
Corporate stocks performance
Uber Technologies shares slumped 7.6% to 41.57 USD after the company’s debut on the New York Stock Exchange. The ride-hailing firm priced its IPO on Thursday afternoon at 45 USD per share, which is expected to raise the company at least 8 billion USD.
The stocks of Symantec sank 13% after the firm reported an earnings miss and downbeat guidance on Thursday evening, and said that CEO Greg Clark had left his role.
Shares of Viacom Inc rose by 2.6% after the entertainment content company reported fiscal second-quarter earnings that beat expectations, but a wider decline in revenue than Wall Street had expected.
The best performers of the session on the Dow Jones Industrial Average were Walmart Inc (+2.38), Procter & Gamble Company (+1.7%) and Coca-Cola Company (+1.67%), while on the flip side were Apple Inc (-1.39%), Intel Corporation (-0.9%) and Walgreens Boots Alliance Inc (-0.26%).