Dow Jones Industrial Average jumps 181 points
The Dow climbed 181.97 points, or 0.70% to close at 26,346.01. The S&P 500 gained 0.91% to end the day at 2,919.40. The Nasdaq Composite advanced 1.02% to 7,903.74. Stocks got a jolt from a report that stoked hopes for the U.S.-China trade talks.
Trade hopes rise heading into US-China talks
Bloomberg News reported that China is ready to accept a partial trade deal, lifting investor sentiment ahead of talks that are set to begin Thursday. The only condition, according to the report which cites an official, is President Donald Trump holding off on additional U.S. tariffs on Chinese products. The report added, however, negotiators are not optimistic about reaching a broad deal that would end the trade conflict. Market expectations for a broad deal were low entering the week, but investors are looking for signs the two sides are making progress to eventually end the trade war. If negotiators fail to ease the uncertainty around global trade, stocks could add to their losses for the month.
Apple gains offsets JNJ losses
Apple shares rose more than 1% after an analyst at Canaccord Genuity hiked his price target on the tech giant to $260 per share from $240, citing strength in iPhone 11 sales. Johnson and Johnson, another Dow member, fell nearly 2%, however. The stock was hit after a Philadelphia jury ruled one of the company’s subsidiaries must pay $8 billion in a case linking Risperdal to male breast growth.