- Stock markets rose for the third consecutive day as companies reported solid earnings amid rising investor hopes for a détente in the U.S. trade standoff with China.
Stock markets closed higher Thursday, buoyed by hopes of a cooling off in the U.S.-China trade war after Trump administration officials earlier this week painted a picture of progress.
The S&P 500 gained 2%. The Dow rose 1.2%, or 486 points, while the tech-heavy Nasdaq closed 2.7% higher.
The rally began earlier this week after President Donald Trump softened his stance toward Federal Reserve Chair Jerome Powell, whom he had clashed with over the central banker’s stark assessment of tariffs. Treasury Secretary Scott Bessent reportedly suggested a “de-escalation” with China and offered a rosy picture of potential trade deals. More than 100 countries have come to the table to negotiate deals, Bessent told the audience during a public speech at the Institute of International Finance.
Meanwhile, many companies are reporting stronger-than-expected earnings even as they warn of economic turbulence ahead.
Toy company Hasbro rose nearly 15% after reporting outsize growth for its Wizards of the Coast segment. American Airlines and rival Southwest reported strong profits on Thursday, sending their stocks higher by 3.1% and 3.7%, respectively. However, American pulled its guidance for the rest of the year owing to the uncertain outlook. Delta pulled a similar move earlier this month, and a host of companies have rolled back forward guidance, citing the on-again, off-again tariff policies.
Treasury yields fell, with the yield on the 10-year Treasury dropping to 4.30% from 4.40%. An employment report earlier in the day showed that the job market was weakening slightly, with more Americans applying for jobless aid than economists had expected, while sales of existing homes likewise fell.
This story was originally featured on Fortune.com
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