BUSINESS Stocks surge on trade talks, jobs report

BUSINESS

Stocks surge on trade talks, jobs report

AP

23:06, January 04, 2019

Stocks surged, the dollar weakened and Treasuries tumbled with gold as a risk-on tone gripped financial markets after investors got good news on the economy, Federal Reserve policy and trade tensions.
The S&P 500 rallied 3.4 percent, the Dow Jones Industrial Average roared higher by almost 750 points and the Nasdaq 100’s surge topped 4 percent. All of the blue-chip index’s 30 members advanced. The rally didn’t surpass the post-Christmas breakout, but it ranked among the steepest of the bull market.

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Trader Eric Schumacher, left, and specialist Robert Nelson work on the floor of the New York Stock Exchange on Jan. 2, 2019. (File photo: AP)

Stocks are jumping early Friday as investors are encouraged by news of trade talks between the US and China and a strong report on the US job market.

The Dow Jones Industrial Average rose 467 points, or 2.1 percent, to 23,154. The S&P 500 gained 2.1 percent, to 2,498. The Nasdaq rose 2.3 percent, to 6,614. Technology and energy stocks are leading the broad gains.

The US government said employers added 312,000 jobs last month. The strong showing could allay concerns about an economic slowdown in the US Those concerns, along with a weak revenue forecast from Apple, contributed to steep losses in stocks Thursday. 

Most overseas markets rose after China's Commerce Ministry said trade talks between the US and China will be held Monday and Tuesday in Beijing.

Bond prices dropped as investors turned back to riskier investments. The yield on the 10-year Treasury surged to 2.64 percent.

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