Stocks surge for 3rd straight day on hopes of tariff progress
Hopes of a tariff deal drove the major indexes higher.
- Stock markets rose for the third consecutive day as companies reported solid earnings amid rising investor hopes for a detente in the U.S. trade standoff with China.
Stock markets closed higher Thursday, buoyed by hopes of a cooling-off in the U.S.-China trade wars after Trump administration officials earlier this week painted a picture of progress.
The S&P 500 gained 2%. The Dow rose 1.2%, or 486 points, while the tech-heavy Nasdaq closed 2.7% higher.
The rally began earlier this week after President Donald Trump softened his stance toward Federal Reserve Chair Jerome Powell, whom he had clashed with over the central banker's stark assessment of tariffs. Treasury Secretary Scott Bessent reportedly suggested a "de-escalation" with China and offered a rosy picture of potential trade deals. More than 100 countries have come to the table to negotiate deals, Bessent said in a public speech at the Institute for International Finance.
Meanwhile, many companies are reporting stronger-than-expected earning even as they warn of economic turbulence ahead.
American Airlines and Southwest reported strong profits on Thursday, sending their stocks higher even as American pulled its guidance for the rest of the year due to the uncertain outlook. Toy company Hasbro was a winner rose 15% after reporting outsize growth for its Wizards of the Coast segment.
Treasury yields fell, with the yield on the 10-year Treasury dropping to 4.30% from 4.40%.
This story was originally featured on Fortune.com
