Tech revives Wall Street after China's trade comments By Reuters

By Akanksha Rana

(Reuters) – Wall Street saw a rise in tech stocks on Thursday, as China seemed optimistic about resolving the longstanding trade dispute with the United States, easing investors' fears of recession risk.

The Chinese Ministry of Commerce said the two sides were discussing the next round of negotiations in September and hoped the US authorities could cancel additional tariffs to avoid escalation, boost confidence and increase global stocks.

US President Donald Trump said in an interview on Fox News radio that trade talks are scheduled for Thursday, "at a different level."

Tier-sensitive technology stocks jumped 1.68%, boosted by gains from Apple Inc. (O 🙂 Microsoft Corp (O 🙂

Flea makers, who derive much of their revenue from China, also advanced, with the Philadelphia Flea () index rising 2.4%.

"We are observing a slightly softer tone that gives investors hope," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"Perhaps the September negotiations could lead to fruitful conclusions and progress that could lead to a reduction in tariffs or a serious desire to conclude a trade agreement"

The main winners among the S & P 500 () companies were Dollar General Corp (N :), up 9.1% after raising its earnings guidance for the full year. Shares of smaller rival Dollar Tree Inc (O 🙂 increased by 2.1%.

At 9:52 am ET, the Dow Jones Industrial Average () was up 291.29 points, or 1.12%, to 26,327.39, the S & P 500 () up 34.39 points, or 1.19%, at 2,922.33. The Nasdaq Composite () advanced 116.10 points, or 1.48%, to 7,972.98.

The Trump administration on Wednesday formalized its additional 5% tariff on Chinese imports of $ 300 billion and set collection dates from September 1 to December 15, prompting several hundred US companies to warn of price increase.

A number of companies, including Best buy Co Inc (N 🙂 and Abercrombie & Fitch Co (N :), who announced results earlier in the day have warned of the impact of tariffs on their sales.

US consumer electronics retailer shares fell 9%, while retailer's shares for teenagers fell 12%.

The main Wall Street indexes are about to record their worst monthly performance since a sell-off in May, amid fears that optimal tariffs will lead to a recession in the global economy.

These fears came after the reversal of the US yield curve worsened earlier this week to levels not seen since 2007.

Emerging issues outnumbered the declining numbers, with the NYSE having a ratio of 6.85 to 1 and the Nasdaq ratio of 4.37 to 1.

The S & P index posted 20 new highs over 52 weeks and no new lows, while the Nasdaq recorded 23 new highs and 12 new lows.