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By April Joyner
NEW YORK (Reuters) – US stocks rebounded after Friday's defeat after a four-day defeat after US President Donald Trump and Treasury Secretary Steven Mnuchin declared trade talks between the United States and the United States. China were "constructive".
The benchmark, the S & P 500 index, had dropped 1.6%, but it rebounded from its session lows after Mnuchin spoke positively on the two-day talks between the United States and China. He added to the winnings after Trump picked up that sentiment in a series of tweets. The index, however, retreated from the highs of the session after Mnuchin declared that no other commercial negotiations were planned, according to CNBC.
Even with Friday's rebound, however, the S & P 500 and Nasdaq recorded their biggest weekly percentage losses.
Recent developments in trade relations between the United States and China, including an increase in US tariffs on Chinese goods worth $ 200 billion on Friday, have prompted investors to prepare for a possible escalation of the trade dispute between the two largest economies in the world. In turn, this fueled fears of a global economic slowdown, resulting in a flight to low-risk assets such as government bonds.
However, Friday's comments from the White House have allowed some investors to hope for a possible trade deal.
"The market increasingly understands that the statements (of Mnuchin and Trump) are more political than the indication of a change in strategy," said Oliver Pursche, market strategist at Bruderman Asset Management in New York. . "Nothing has changed in terms of our investment thesis, and in the short term, China needs a trade deal more than the United States. United are more in need than China, in fact, it's a pretty good balance. "
The Dow Jones Industrial Average rose 114.01 points, or 0.44%, to 25,942.37, the S & P 500, 10.68 points, or 0.37%, to 2,881.4 and the Nasdaq Composite added 6.35 points, or 0.08%, to 7,916.94.
For the week, the Dow Jones index lost 2.12%, the S & P 500 index lost 2.17% and the Nasdaq lost 3.03%.
Shares of Uber Technologies Inc. fell 7.6% after opening below the price of their initial public offering in the company's long-awaited market.
Shares of Symantec Corp plunged 12.5% after the antivirus maker issued a profit warning and unexpectedly announced that its general manager would pull out.
Shares of chip makers, who derive much of their revenue from China, finished higher, ending their series of four-day declines, but the Philadelphia semiconductor index fell 5, 8% for the week.
Increasing issues outnumbered declining issues on the NYSE with a ratio of 1.85 to 1; on the Nasdaq, a ratio of 1.22 / 1 favored the advanced.
The S & P 500 recorded 20 new highs over 52 weeks and 12 new lows. the Nasdaq Composite recorded 57 new highs and 107 new lows.
The volume of US trade amounted to 7.44 billion shares, compared to an average of 6.9 billion for the full trading session of the last 20 trading days.
(Report by April Joyner, additional report by Amy Caren Daniel in Bengaluru, edited by Sriraj Kalluvila, Jonathan Oatis and Diane Craft)
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