Wall Street’s main indexes hit fresh record highs on Friday, as optimism related to US-China trade talks and solid earnings from semiconductor industry bellwether Applied Materials brightened sentiment.
Nine of the 11 major S&P 500 sectors were higher. The trade-sensitive technology sector .SPLRCT rose 0.77%, providing the biggest boost.
White House economic adviser Larry Kudlow said late on Thursday that the world’s two largest economies were getting close to a trade agreement, citing what he called very constructive talks with Beijing.
Adding to the upbeat mood, Commerce Secretary Wilbur Ross said there would be a call between U.S. and Chinese officials later on Friday.
“We are definitely headed in the right direction with regard to trade,” said Keith Buchanan, portfolio manager at GlobAlt in Atlanta.
“Although there was some skittishness … the equity market hasn’t shown much of a pull back and we are still making those highs.”
Wall Street’s main indexes have been powered recently by hopes of a trade deal, largely better-than-expected third-quarter earnings and a third interest rate cut by the Federal Reserve. The benchmark S&P 500 index was on course to post its sixth weekly percentage rise.
Data showed U.S. retail sales rebounded in October, but consumers cut back on purchases of big-ticket household items and clothing, which could temper expectations for a strong holiday shopping season.
The report comes a day after the benchmark S&P hit an all-time closing high after retail giant Walmart Inc’s robust earnings.
At 11:29 a.m. ET the Dow Jones Industrial Average was up 155.78 points, or 0.56%, at 27,937.74, the S&P 500 . was up 18.44 points, or 0.60%, at 3,115.07 and the Nasdaq Composite was up 55.36 points, or 0.65%, at 8,534.38.
Qualcomm Inc gained 2% after Mizuho upgraded its rating on the stock to “buy” from “neutral”. Nvidia Corp, however, fell 1.7% as the company said it expects its gaming chip business to be impacted by seasonal weakness in the fourth quarter.
Advancing issues outnumbered decliners by a 1.92-to-1 ratio on the NYSE and a 1.64-to-1 ratio on the Nasdaq. The S&P index recorded 42 new 52-week highs and one new low, while the Nasdaq recorded 87 new highs and 79 new lows.
