Dow, S&P touch record highs on relief from trade concerns


NEWS / Finance 390 Views

By Shreyashi Sanyal

(Reuters) - The Dow and the S&P 500 hit report highs on Thursday, clearing away buyers' instant considerations over commerce at the beginning of this week and leaving Wall Road free to return to a rally that now dates again a decade.

Tech shares have been once more on the forefront of good points, led by chipmakers and a 1.1 % rise in Apple, which has drawn coronary heart from the exclusion of some merchandise from the listing of U.S. tariffs on China on Monday.

9 of the 11 main S&P sectors have been larger, and the Dow Industrials, which had lagged the Nasdaq and the S&P, shortly moved again into report territory in morning commerce.

"The brand new report territories for the Dow and the S&P are fueled by lesser commerce worries and simply basic enthusiasm concerning the financial system," stated Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

At 11:28 a.m. ET the Dow Jones Industrial Common was up 234.42 factors, or zero.89 %, at 26,640.18, the S&P 500 was up 19.10 factors, or zero.66 %, at 2,927.05 and the Nasdaq Composite was up 64.81 factors, or zero.82 %, at eight,014.84.

Chipmakers Intel and Micron rose 1.eight % and a couple of.6 %.

Samsung Electronics stated it was planning to decrease reminiscence chip progress output subsequent yr to maintain provides tight amid an anticipated slowdown in demand, Bloomberg reported.

The transfer might both assist keep or push semiconductor costs up, though it may be one other sign of weakening momentum in a sector which noticed its first blips in years within the first half.

"Many buyers are presently in search of corporations with extra pricing energy and is definitely a theme for semiconductors to maneuver greater on," stated Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

After having slapped new tariffs on one another's items this week, China now hopes that Washington will present sincerity and take steps to right its conduct.

Beneath Armour rose 6.four % after the sportswear maker stated it might minimize about 400 international workforce positions, as a part of efforts to chop prices to compete with Nike and Germany's Adidas in North America.

Nike climbed 1.5 % after brokerage Susquehanna highlighted the corporate's enhancing gross sales of footwear.

Nevertheless, Common Electrical dropped three.7 % after the corporate flagged points with its new H-class fuel turbine.

Advancing points outnumbered decliners for a 1.81-to-1 ratio on the NYSE and a 2.44-to-1 ratio on the Nasdaq.

The S&P index recorded 36 new 52-week highs and no new lows, whereas the Nasdaq recorded 46 new highs and 25 new lows.

(Reporting by Shreyashi Sanyal in Bengaluru; Modifying by Arun Koyyur and Shounak Dasgupta)