NEW YORK: Wall Street was back in buying mode Thursday, pushing the Nasdaq to a fresh record as high hopes for earnings season overshadowed trade war fears.
The Dow Jones Industrial Average gained 0.9 percent to close at 24,924.89.
The broad-based S&P 500 advanced 0.9 percent to 2,798.29, while the tech-rich Nasdaq Composite Index jumped 1.4 percent to finish at 7,823.92, its first record since June 20.
Shares of large technology companies including Apple, Amazon and Microsoft won more than 1.5 percent, along with industrial heavyweights Boeing and Caterpillar.
Stocks had risen four straight sessions until new US tariff actions throttled stocks on Wednesday. But investors shook off those fears again Thursday.
“With President Trump in Europe this week, the trade wars issue is on hold and has taken a back seat,” said Gorilla Trades strategist Ken Berman.
“The major indices are higher …as earnings season shifts into the spotlight. Optimism is still there regarding earnings.”
Analysts have projected US companies will report about a 20 percent jump in second-quarter earnings compared with the year-ago period based on solid US economic trends and US tax cuts.
A wildcard is whether chief executives express greater worry about the hit from tariffs or announce plans to slow down capital spending programs due to trade uncertainty, which economists have warned is a risk.
A trio of large banks led by JPMorgan Chase will report results Friday.
Delta Air Lines shares advanced 1.8 percent after reporting better-than-expected earnings, even as its full-year forecast missed expectations due to the hit from higher fuel prices.
Software and services firm CA Technologies surged 18.7 percent after agreeing to be acquired by semiconductor giant Broadcom for $18.9 billion. Broadcom slumped 13.7 percent.
US pizza chain Papa John’s surged 11.1 percent after embattled founder John Schnatter resigned as chairman for using an inflammatory racial slur on a conference call.
Source: Brecorder
