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The Dow Jones Industrial Average Index finished higher on Friday, recording its first run of consecutive wins in eight days in more than a year thanks to improved confidence in the US-US trading relationship. China.
The 30-share index closed up 37 points to 27,219. The S & P 500 and the Nasdaq, however, struggled, losing respectively about 0.1% and 0.2%.
The Dow finished Friday's session 0.7% below the record high of 27,398 in intraday. The S & P 500 was also within the range of its record of 3,027.
Caterpillar and Boeing trademarks increased 1.5% and 1.1%, respectively. These gains were slightly offset by a 1.9% decline at Apple. The tech giant's shares fell after an analyst at Goldman Sachs reduced his price target on Apple to $ 187 per share, up from $ 187 per share.
"If anyone has any doubts about what's moving the markets, it's the trade war," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management.
Schutte pointed out that the so-called defensive sectors, recently in vogue because of trade and recession fears, broke down this week. Two of these sectors, real estate and basic consumption, decreased by 3.5% and 0.9% respectively.
The sentiment around the trade war improved after the New York Times announced on Friday that China would exempt some US agricultural products, including soybeans and pork, from new tariffs.
On Thursday, the United States welcomed the resumption of purchases of US agricultural products by China. President Donald Trump announced that Beijing would buy large quantities of agricultural products. Trump also said he would consider an interim trade deal with China.
"This is quickly becoming the basic assumption and therefore it is unclear whether the stock will react favorably to future headlines, simply confirming the likelihood of such a scenario," said Adam Crisafulli, executive director of JP Morgan .
Trump's comments came after his decision to defer the $ 250 billion increase in tariffs on Chinese goods from October 1 to 15, as a sign of goodwill towards China. The United States and China have imposed tariffs on billions of dollars worth of goods since the beginning of 2018, degrading financial markets and weakening the business and consumer climate.
The optimistic sentiment sparked by the trade war pushed the main indices to achieve their third consecutive weekly gain. The Dow has risen 1.6% since the start of the week, while the S & P 500 and Nasdaq have risen about 0.9%.
This also led to a massive sellout of US sovereign bonds. The 10-year Treasury yield climbed more than 30 basis points this week, from about 1.57% to 1.89% earlier in the week.
Bank shares benefited from higher rates. Bank of America grew nearly 9% a week, while Citigroup and JP Morgan Chase both advanced more than 6%. The three banks also increased more than 1.5% each Friday.
On the data front, consumer confidence for September exceeded expectations as consumers felt better about the economy. However, worries about the trade war have increased.
Sam Meredith and Michael Bloom of CNBC contributed to this report.
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