Stock Today: U.S. on Strong Gains after China’s Report

Stock Today – On Thursday, U.S. stocks posted robust gains. The Dow Jones Industrial closed at 26,362.25. It gained 326.15 points or 1.3%. Likewise, the S&P 500 index ended at 2,924.58. It boosted by 36.64 points or 1.3%. The Nasdaq Composite Index advanced 116.51 points or 1.5% finishing at 7,973.39.

Last week’s rebound has slashed month-to-date losses for the major indexes. The S&P 500 and Dow Jones fell 1.9%. Also, the Nasdaq dropped 2.5%.

In addition to that, the S&P 500 and Dow Jones are each less than 4% below all-time closing highs set in July. Then, Nasdaq remained 4.2% below its very peak.

Trade War Driving the Market

Then, more on the stock today, a spokesman for China’s commerce ministry indicated that the country “wouldn’t immediately respond” to the most recent additional tariff imposed by U.S. President Donald Trump on Friday.

Furthermore, spokesman Gao Feng stated, “the question that should be discussed is about removing the new tariffs to prevent escalation.” Feng added that the two sides are already talking about the planned meeting next month of trade negotiations.

Also, moving from stock today, investors parsed some economic reports. For instance, the revision of second-quarter GDP growth. It displayed the U.S. economy developing at a 2% annual rate compared to the lat report of 2.1%. Moreover, economists are expecting the revision to be at least 1.9% in growth.

The revised numbers showed the U.S. consumer playing a bigger role in economic growth than the last time. And personal consumption accounted for 3.1 percentage point of growth. Previously, it was about 2.9.

Elsewhere, during the week ended August 24, new applications for jobless benefits boosted by 4,000 to a seasonally adjusted 215,000. And it was slightly more than the economist expectation of 214,000.

Now, going back to stock today, it pulled back in August in sometimes volatile trade. And this was due to the U.S.-China trade dispute escalating with rounds of tit-for-tat tariff escalations and increasingly harsh rhetoric on both countries.