Stocks bounce back as trade rhetoric cools
NEW YORK (Reuters) - U.S. stocks on Tuesday reclaimed some of the ground lost in the prior day’s steep sell-off, with tariff-sensitive technology stocks leading the S&P 500 and the Nasdaq higher as investors were heartened by a tonal shift in U.S.-China trade rhetoric.
All three major U.S. indexes closed in the black, although they pared gains late in the day and clawed back less than half of Monday’s losses, which were the largest one-day percentage drops in months. The bellwether S&P 500 remains nearly 4% below its all-time high reached two weeks ago.
Investors’ nerves were calmed after U.S. President Donald Trump referred to the escalating trade war with China as “a little squabble,” and added, “We have a good dialogue going.”
Beijing echoed that sentiment. A Chinese Foreign Ministry spokesman told reporters: “My understanding is that China and the United States have agreed to continue pursuing relevant discussions.”
“(Today) was a good buying opportunity in terms of how low prices got yesterday,” said Jim Bell, chief investment officer at Bell Investment Advisors in Oakland, California. “And now Trump is trying to smooth the waters.
“I assume a lot of people still take the president seriously when he makes these comments,” Bell added. “There’s still strong support for his policies and people want to believe what he’s saying, that it’s going to end well.”
Boeing Co provided the biggest boost to the Dow, rising 1.7% as tariff-vulnerable industrials buoyed the blue chip index.
Ralph Lauren Corp fell 3.7% after the apparel company posted quarterly results that included disappointing North American sales.
Uber Technologies and ride-hailing rival Lyft Inc reversed course after their post-debut slides. Their stocks advanced 7.7% and 4.9%, respectively.
Uber’s shares rose another 6.4 percent in after-the bell trading after a U.S. labor agency said it had concluded that the company’s drivers were independent contractors, not employees.