(Reuters) – Key Wall Street indexes were set on Friday to record their biggest weekly gain for nearly a month as investors are optimistic about ongoing trade talks aimed at resolving a deadly tariff dispute between the states. United States and China.
President Donald Trump said the talks with China "were going extremely well" and that the United States was closer than ever to a "real" trade deal with Beijing. Discussions between the world's largest economies will continue next week in Washington.
"Today's sentiment is mainly based on the commercial progress and the fact that we will be meeting with Chinese representatives in Washington.It seems that the negotiations are achieving results faster than expected," said Edward. Moya, market analyst at Oanda, a York futures broker.
Hopes of a trade deal before the March 1 deadline have enabled trade-sensitive industrials to gain nearly 17% since the beginning of the year, making it the S & S sector. P the most efficient.
The group gained 1.13% with Boeing Co and Caterpillar Inc. megaphones.
The markets shrugged at Trump, declaring a national emergency to fund the wall he had promised at the US-Mexico border without congressional approval, an action the Democrats have promised to challenge as a violation of the US-Mexico border. the American Constitution.
"At present, the implications of the emergency are neglected because of the legal battle," said Moya.
Despite the threat of a national emergency, the top 11 sectors of S & P recorded higher trade, with financial growth of 1.89% leading gains.
The banking sector grew by 2.62%, supported by major US lenders. JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co rose 1.7% to 3.0% after Warren Buffett's Berkshire Hathaway Inc increased its holdings in these companies.
At 12:55 pm The average industrial yield of the Dow Jones rose by 345.97 points, or 1.36%, to 25,785.36. The S & P 500 rose 22.52 points, or 0.82%, to 2,768.25 and the Nasdaq Composite, 28.54 points, or 0.38%, to 7,455.49.
The S & P has risen more than 10% since the beginning of the year, driven by the progress of trade, a dovish federal reserve and largely optimistic results in the fourth quarter. The benchmark is now expected to end above its 200-day moving average, an indirect indicator of long-run momentum, for a fourth consecutive session.
According to Refinitiv's IBES data, analysts now expect earnings growth of 16.2% in the last quarter. However, first quarter estimates are less favorable, down 0.5% from the previous year.
PepsiCo Inc rose 3.1% after the soft drink maker said more investment in advertising and products would boost sales growth.
Nvidia Corp grew by 2.5% and helped the technology sector to grow 0.42%, after the chip maker anticipated a recovery in demand by the end of the year.
Newell Brands Inc. plunged 20.4% after forecasting weaker than expected annual sales due to the strength of the dollar.
Increasing issues outnumbered declining numbers, with the NYSE reporting a 3.55 to 1 ratio and Nasdaq a ratio of 3.31 to 1.
The S & P index recorded 40 new highs over 52 weeks and no new lows, while the Nasdaq recorded 73 new highs and 15 new lows.
(Report by Amy Caren Daniel and Shreyashi Sanyal in Bengaluru, edited by Arun Koyyur and Shounak Dasgupta)