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Stocks Bounce Back From Trade Tremors, Bonds Fall: Markets Wrap

  • S&P 500 roars back from 1.5% drop as threat reassessed
  • Haven demand evaporates when officials suggest negotitations
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The trade spat won’t escalate and earnings will stay on track, says JPMorgan Asset Management’s Karen Ward.Source: Bloomberg
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U.S. equities stormed back from deep losses sparked by trade tensions as investors speculated the Trump administration won’t enact the most protectionist proposals and risk derailing economic growth.

The S&P 500 Index saw the biggest two-day gain in five weeks as representatives from China and the Trump administration left the door open for a negotiated solution to avoid tariff proposals that wouldn’t take effect for months. Treasury yields turned higher to trade near 2.79 percent. The dollar fell as the Mexican peso strengthened after the U.S. president was said to have softened on his car-parts demand in North American Free Trade Agreement negotiations.