November 16, 2018 – A rebound in technology companies and banks helped reverse an early slide for U.S. stocks last night, breaking a five-day losing streak for the market.
Health care and industrial stocks also rose, offsetting losses in retailers, homebuilders, utilities and other sectors. Energy stocks also helped lift the market as the price of U.S. crude oil rose for the second straight day.
British bank stocks plunged and the British pound slumped amid discord over a new deal for Britain’s departure from the European Union next Spring.
The late-afternoon market rebound marked the latest episode of volatile trading for the market this week.
“We’re going back and forth between days when investors are taking risk-off and days when they’re taking risk back on,” said Jason Pride, chief investment officer of private clients at Glenmede. “We’re probably going to go through a period of this basically because it’s hard for investors to figure out where we are at this stage of the economic cycle.”
The S&P 500 index rose 28.62 points, or 1.1 percent, to 2,730.20. The Dow Jones Industrial Average gained 208.77 points, or 0.8 percent, to 25,289.27. The Nasdaq composite climbed 122.64 points, or 1.7 percent, to 7,259.03. The Russell 2000 index of smaller companies picked up 21.62 points, or 1.4 percent, to 1,524.12.
Thursday’s market rebound coincided with a Financial Times report citing unnamed sources that said the United States’ trade representative, Robert Lighthizer, has told some executives that a planned escalation in January of U.S. tariffs on imported goods from China are now on hold.
“This bit of information helped to move the market higher today, especially technology stocks,” said Quincy Krosby, chief market strategist at Prudential Financial.
The Trump administration has imposed a 10 percent tariff on $200 billion of Chinese goods over complaints Beijing steals or pressures foreign companies to hand over technology as the price of market access. That tariff had been due to rise to 25 percent in January. Another $50 billion of Chinese goods already is subject to 25 percent duties. Beijing has responded with penalty duties on $110 billion of American goods.