Global Stocks Sustain Rally as US-China Trade Talks Wrap Up
In this Jan. 3, 2019, file photo specialist Michael Pistillo, right, works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EST on Wednesday, Jan. 9.
By AP reporter Richard Drew
NEW YORK (AP) — Stocks around the world built on their early 2019 rally Wednesday after negotiators from the U.S. and China extended their trade talks to a third day, which investors took as a sign the discussions were productive even though no major breakthroughs have been announced. Oil prices also continued to climb and stocks linked to faster economic growth, such as technology companies, kept climbing.
KEEPING SCORE: The S&P 500 index climbed 6 points, or 0.3 percent, to 2,580 as of 9:50 a.m. Eastern time. The Dow Jones Industrial Average gained 110 points, or 0.5 percent, to 23,900. The Nasdaq composite rose 29 points, or 0.4 percent, to 6,926. The Russell 2000 index of smaller and U.S.-focused stocks added 4 points, or 0.3 percent, to 1,431.
Indexes in Europe and Asia made bigger gains. Germany's DAX added 1.3 percent and the CAC 40 in France climbed 1.4 percent. Britain's FTSE 100 jumped 1 percent. Japan's Nikkei 225 index gained 1.1 percent and the Hang Seng in Hong Kong rallied 2.3 percent. South Korea's Kospi advanced 2 percent.
CHINA-US TRADE: The latest round of trade negotiations between the world's two largest economic powers have now concluded, but investors were cheered when they learned the two-day talks would be extended. No details were immediately announced.
The Trump administration wants the government of President Xi Jinping to alter its handling of technology and intellectual property held by foreign companies, and change plans for government-led creation of Chinese leaders in advanced technologies. Chinese officials have suggested they could revise some of their industrial plans but have but won't abandon larger goals that they consider a path to prosperity and global influence.
FIVE O'CLOCK SOMEWHERE: Beer and wine maker Constellation Brands slumped after it cut its annual profit forecast, saying it now expects sales and profits for its wine and spirits division to fall in the current fiscal year. The stock gave up 10.4 percent to $154.37.
EARLY RISERS: Technology companies kept edging higher after their steep losses over the final months of 2018. Chipmakers made some of the largest gains. Intel climbed 1.3 percent to $48.37 and Micron Technology picked up 6.6 percent to $3.598. Elsewhere, Microsoft added 0.8 percent to $103.67.
OVERSEAS: ENERGY: Oil prices also continued to rally. U.S. crude rose 3.3 percent to $51.40 a barrel in New York. It hasn't traded above $50 a barrel in almost a month. Brent crude, used to price international oils, added 2.8 percent to $60.35 a barrel in London.
Crude oil is on track to rise for the eight day in a row and ninth in the last 10. U.S. crude has jumped 13 percent so far in 2019.
BONDS: Bond prices continued to fall. That sent yields higher, a sign investors expect more economic growth and higher long-term interest rates. the yield on the 10-year Treasury note rose to 2.73 percent from 2.71 percent.
FED MINUTES: Later Wednesday the Federal Reserve will release minutes from its policy meeting last month, at which the central bank raised interest rates and reduced its forecasts for the number of hikes this year from three to two.
CURRENCIES: The dollar slipped to 108.47 yen from 108.65 yen. The euro climbed to $1.1519 from $1.1443 and the British pound rose to $1.2785 from $1.2719.
By AP reporter Marley Jay
Pan Pylas contributed to this story from London.