Stocks rose late on Friday as investors welcomed signs of progress in resolving a trade dispute between the US and China.
Industrial, healthcare and basic materials companies made some of the biggest gains.
The Wall Street Journal reported that the countries hope to have a resolution by November. The report came one day after China said it would send an envoy to Washington for the first talks between the countries since early June.
Stocks could jump if the US and China make real progress toward a trade agreement, Schroders PLC investment strategist Marina Severinovsky said, but added that stocks in emerging markets might make even bigger gains.
“The rally that could come, if there is a better outcome, would be in emerging markets,” she said. “China has suffered pretty greatly ... the US has held up pretty well.”
The late gains came in spite of weak results for several chipmakers.
Electric car maker Tesla Inc took its biggest drop in two years on reports of a wider US government investigation into the company and concerns about CEO Elon Musk’s health.
The S&P 500 on Friday rose 9.44 points, or 0.3 percent, at 2,850.13, rising 0.6 percent from 2,833.28 on Aug. 10.
The Dow Jones Industrial Average on Friday added 110.59 points, or 0.4 percent, to 25,669.32, an increase of 1.4 percent from a close of 25,313.14 a week earlier.
The NASDAQ Composite on Friday edged up 9.81 points, or 0.1 percent, to 7,816.33, but slid 0.3 percent for the week from 7,839.11.
The Russell 2000 index of smaller-company stocks on Friday gained 7.19 points, or 0.4 percent, to 1,692.95, gaining 0.4 percent from a close of 1,686.80 on Aug. 10.
The Wall Street Journal, citing officials in the US and China, said negotiators want to end the trade war before US President Donald Trump and Chinese President Xi Jinping (習近平) meet at multilateral events in November.
Industrial companies made some of the biggest gains after agricultural equipment maker Deere & Co posted stronger-than-expected sales. Its stock rose 2.4 percent to US$140.59.
Construction equipment maker Caterpillar Inc rose 2.3 percent to US$139.34 and engine maker Paccar Inc added 2.3 percent to US$67.16.
Chipmakers fell after two companies gave weaker forecasts for the third quarter.
Nvidia Corp said it no longer expects much revenue from products used in mining digital currencies, and its stock fell 4.9 percent to US$244.82.
Applied Materials Inc slumped 7.7 percent to US$43.77.
While big names like Netflix Inc, Facebook Inc and Amazon.com Inc slipped, Apple Inc led technology companies slightly higher overall. Apple stock rose 2 percent to US$217.58.
Nordstrom Inc jumped 13.2 percent to US$59.18 after raising its annual profit and sales forecasts and posting better earnings and sales than analysts expected.
It was a mostly difficult week for department stores, as Macy’s and J.C. Penney Co Inc plunged after issuing their quarterly reports.
The S&P 500 finished this week with a solid gain, but it took a difficult path to get there. Stocks fell early this week due to worries about Turkey’s currency crisis, and later investors fretted about China’s economic growth.
The recovery started on Thursday as investors hoped the upcoming talks between the US and China would help end the impasse that has resulted in higher tariffs from both countries.
Hong Kong’s Hang Seng has fallen 13 percent since early June as the dispute has dragged on and other emerging-market indices have also taken a hit. The S&P 500 has risen over that time.
Tesla was hit with a series of reports that concerned shareholders.
The Wall Street Journal reported that the US Securities and Exchange Commission started investigating the electric car maker last year to determine if it made false statements about production of its Model 3 sedan.
The regulator is also reportedly looking into Musk’s comment on Twitter about possibly taking the company private.
Tesla stock rose from about US$345 to about US$380 following Musk’s tweet last week, which said Tesla could go private for US$420 per share. On Friday it dropped 8.9 percent to US$305.50.
Musk also gave an emotional interview to the New York Times, which was published on Friday, about the stress he has experienced as the company tries to ramp up production.
This year has been “excruciating,” Musk said, describing working up to 120 hours per week, raising concerns about his health.
Additional reporting by staff writer
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