US stocks recover amid trade uncertainty

US stocks recover amid trade uncertainty

NYSE May14
Traders work on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)

NEW YORK: Wall Street stocks finished solidly higher on Tuesday (May 14), bouncing from the prior session's rout amid ongoing uncertainty over the prospects for a US-China trade deal.

The Dow Jones Industrial Average ended at 25,532.05, up 207.06 points (0.82 per cent), winning back about one third of the Monday's loss.

The broad-based S&P 500 climbed 22.54 points (0.80 per cent) to 2,834.41, while the tech-rich Nasdaq Composite Index jumped 87.47 points (1.14 per cent) to 7,734.50.

Major US indices had lost more than two per cent on Monday after China announced retaliatory tariff measures on the United States following Washington's move last week to more than double the punitive tariffs already in place.

Trump on Tuesday called the escalating dispute with China "a little squabble," but said Washington was still considering extending tariffs to another US$300 billion worth of Chinese merchandise.

Still, some analysts viewed the reaction in markets on Monday as exaggerated and still expect a deal. The two sides have both said they expect further talks, including at a Group of 20 summit next month in Japan.

"Volatility is increasing on the heels of uncertainty in trade discussions," said Terry Sandven, chief equity strategist for US Bank Wealth Management.

Among individual companies, Walt Disney gained 1.4 per cent after announcing it reached agreement with Comcast to take control of streaming service Hulu. Comcast, which holds a 33 per cent stake, advanced 1.5 per cent.

Source: AFP/de