Stocks finish mostly higher on U.S.-China trade optimism.
The U.S. stock market finished mostly higher on Friday even after President Trump cast doubts about the prospect of an imminent trade deal with China.
The Dow Jones Industrial Average (DIA) lagged the broader market on Friday, closing flat at 27,678.22. The blue-chip index was off by more than 100 points earlier in the day.
The S&P 500 Index (SPY) of large-cap stocks advanced 031% to 3,092.99, a new record high. Gains were mainly concentrated in health care, information technology and communication services.
A strong performance in the technology sector propelled the Nasdaq Composite Index (QQQ) sharply higher. The tech-laden average rose 0.5% to close at 8,475.31.
A measure of implied volatility known as the CBOE VIX (VXX) declined on Friday, reflecting underlying calm on Wall Street. The so-called “fear index” declined 4.8% to 12.12 on a scale of 1-100 where 20 represents the historic average.
U.S. President Donald Trump said Friday that his administration was not considering rolling back tariffs as part of a ‘phase one’ trade deal, contradicting earlier reports on the matter. Stocks surged to record highs on Thursday after The Wall Street Journal reported that the U.S. and China will agree to scale back import duties as part of a partial trade deal.
The Final Word: With President Trump pouring cold water on trade-deal optimism, the U.S. stock market could face resistance in the week ahead. Economic data are back in the headlines next week with reports on consumer inflation, producer prices and retail sales. The Federal Reserve will also report on industrial production and capacity utilization in the final session of the week.