Economics
Stock Rally Tempered by China Tensions; Oil Rises: Markets Wrap
- S&P 500 jumps to nine-week high; dollar slides with Treasuries
- Consumer confidence, new home sales data tops estimates
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U.S. stocks rose, but closed sharply off their highs after Bloomberg News reported that the Trump administration is considering sanctions on Chinese officials, threatening to escalate tensions between the world’s two largest economies.
The S&P 500 ended up 1.2% at an 11-week high, giving up in the final half hour of trading almost 50% of gains that topped 2%. Stocks had soared earlier as investors poured back into risk assets on speculation the worst of the economic hit from the pandemic has passed. Megacap tech shares in the Nasdaq 100 fell on the day, while chipmakers exposed to China tumbled at the end of the session.