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US stocks rise on optimism over trade talks

US stocks rise on optimism over trade talks

Trader Craig Esposito works on the floor of the New York Stock Exchange. (Photo: AP/Richard Drew)

NEW YORK: Wall Street stocks rose for the third straight session on Tuesday (Jan 8), boosted by optimism over US-China trade talks.

The Dow Jones Industrial Average gained 256.10 points (1.09 per cent) to 23,787.45.

The broad-based S&P 500 advanced 24.72 points (0.97 per cent) to 2,574.41, while the tech-rich Nasdaq Composite Index climbed 73.53 points (1.08 per cent) to 6,897.00.

Trade talks in Beijing were set to continue on Wednesday in the first face-to-face meetings since US President Donald Trump and Chinese President Xi Jinping agreed to a tariff truce during a meeting in Argentina on Dec 1.

The Wall Street Journal reported the two sides were narrowing their differences, with Chinese officials offering greater purchases of US goods and services and Cabinet-level follow-up meetings expected later this month.

The latest stories suggest trade tensions "are not as dire as expected," said Frances Donald, head of macroeconomic strategy at Manulife Asset Management.

"There are downside risks that continue," Donald said, adding that the rebound over the last few sessions also showed investors realised "there are also upside risks to this market."

US stocks have been on the upswing since Federal Reserve Chair Jerome Powell on Jan 4 signalled a more cautious approach to further interest rate hiking.

Apple gained 1.9 per cent after Chief Executive Tim Cook expressed confidence in the company's technology pipeline in spite of recent criticism, telling CNBC the company had been underestimated before.

Boeing surged 3.8 per cent after reporting 806 commercial airplane deliveries in 2018, up from 763 last year. The figure was also a company record although it missed forecasts.

Mattel jumped 4.7 per cent after it announced plans for the first live-action "Barbie" feature film starring actress Margot Robbie.

Source: AFP/ec


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