US Market extends gain for third day on trade optimism

The US stock market finished higher for the third straight session on Friday, 11 October 2019, as investors risk sentiments got a boost on prospect of a trade deal after the Trump administration announced it had agreed a limited deal on trade with China and delay planned U.S. tariff increases. At closing bell, the Dow Jones Industrial Average advanced 319.92 points, or 1.2%, to 26816.59. The S&P 500 surged 32.14 points, or 1.1%, to 2970.27. The Nasdaq Composite added 106.26 points, or 1.3%, to 8057.04.

Investor risk sentiment got a boost on prospect of a trade deal after President Trump said that the two countries reached a very substantial Phase One deal and agreed not to implement tariffs set to go into effect next week. China, meanwhile, said it would increase purchases of U.S. agricultural products. As part of this phase, China will purchase between $40 billion and $50 billion in U.S. agricultural products. Trump also said the deal includes agreements on foreign-exchange issues with China. In exchange, the U.S. agreed to hold off on tariff hikes that were set to take effect Tuesday.

 

On the economic data front, the consumer sentiment survey rose to a three-month high of 96 in early October from 93.2 in September, according to a University of Michigan preliminary estimate survey released on Friday.

In commodity markets, crude oil prices gained after an Iranian tanker near the Saudi Arabian coast suffered damage on Friday in what the ship's owner suggested may have been a missile attack. S oil prices settled 2.1% higher at $54.70 a barrel, while the international benchmark, Brent crude, settled 2.4% higher at $60.50 a barrel.

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