Wall Street opens with strong gains boosted by renewed trade optimism

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      Dow surges 326 points on hopes for U.S.-China trade talks        
  UPDATED Thu. Aug. 29 2019 5:47 p.m

News > Business Dow surges 326 points on hopes for U.S.-China trade talks UPDATED Thu. Aug. 29 2019 5:47 p.m

The top performers on the NASDAQ Composite were Eltek Ltd (NASDAQ:) which rose 52.63% to 6.380, Jason Industries Inc (NASDAQ:) which was up 29.40% to settle at 0.505 and SeaChange International Inc (NASDAQ:) which gained 20.21% to close at 2.32. The Nasdaq Composite was up 116.10 points, or 1.48%, at 7,972.98. While a basket of upbeat comments reviving hopes of face-to-face trade talks despite tariffs on each other's product, a senior portfolio manager at Globalt Investment in Atlanta, Thomas Martin said, "It sounds to me like more of a continued slow-walking".

"Let's see what the end product is; that's what you have to judge it by", Trump said.

Markets were higher earlier in the day after data showed strong USA consumer spending in July and on signals that Washington and Beijing would resume trade talks.

Still, the three main indexes were on course to log their worst monthly performance and first monthly decline since a sell-off in May, on worries the intensified trade battle between the world's two largest economies will lead to a global recession. President Donald Trump then announced he would raise tariffs on a slew of Chinese goods starting in September.

The three main indexes are on track to wrap up the week with the biggest gains since June, after coming under vast selling pressure for much of the month due to escalating trade tensions and fears of a looming recession. Traders have brushed aside earlier recession fears sparked by falling bond yields.

The yield on the 10-year Treasury rose to 1.50% from 1.47% late Wednesday. Meanwhile, the rate on the benchmark 30-year Treasury bond sank to an all-time low.

Shares of the USA consumer electronics retailer slid 9%, while those of the teen retailer tumbled 12%.

Advancing issues outnumbered declining ones on the NYSE by a 1.38-to-1 ratio; on Nasdaq, a 1.05-to-1 ratio favoured advancers.

The Trump administration on Wednesday made official its additional 5 per cent tariff on $300 billion in Chinese imports and set collection dates of September 1 and December 15, prompting several hundreds of United States companies to warn of price hikes.

Markets are also bracing for a new round of USA tariffs on some Chinese goods to come into effect on Sunday and the technology sector.SPLRCT was the biggest weight on the S&P with a 0.3% loss.

Ulta Beauty Inc tumbled 28.8%, to the bottom of the S&P 500, after the cosmetics company cut its full-year profit forecast.

USA food company Campbell Soup Co CPB.N rose 3.1% after it reported better-than-expected fourth-quarter profit. The company lowered its revenue outlook for the year, citing the expected impact of US tariffs on Chinese imports. Heating oil climbed 1 cent to $1.86 per gallon. Intel rose 1.5% and Citigroup added 1%.

Gold fell $12.30 to $1,526.50 per ounce, silver dropped 15 cents to $18.17 per ounce and copper added 1 cent to $2.56 per pound.

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