US stocks jumped, pushing all three bellwether indexes to new records, following reports the US and China have agreed to enforce a phased reduction in trade tariffs, removing a major hurdle for the "Phase One" deal between the world's two largest economies.
The Dow Jones Industrial Average rose by 233.27 points intraday, or 0.85%, with the S&P 500 and Nasdaq indexes also advancing by 0.52% and 0.74%, respectively. Energy and financials were among the biggest gainers while utilities were the steepest decliner.
The US 10-year yields surged by 12.8 basis points to about 1.94%, the highest level since late July, and the dollar, which gained against the Japanese yen by 0.3% to 109.32, also strengthened against the euro and the British pound.
Oil jumped by nearly 2%, while gold slid by more than $27 per ounce to $1,465.40, the lowest level since early August.
China's Commerce Ministry spokesperson Gao Feng reportedly said some existing import tariffs will be simultaneously cut in the two countries and noted both sides were closer to a partial trade agreement. The level of tariff relief will depend on the nature of the deal, according to media reports.
No agreement has yet been reached on the timing and location of a meeting between Presidents Donald Trump and Xi Jinping to sign the deal.
In corporate news, shares of Ralph Lauren (RL) jumped 12% intraday after the luxury-goods firm affirmed its full-year revenue guidance after reporting better-than-expected fiscal Q2 results. The stock was the top performer on S&P 500 while Expedia (EXPE) was the steepest decliner after the company's Q3 results missed consensus.
Baidu (BIDU) shares surged by 13%, the most on Nasdaq, after the Chinese-language Internet search provider reported better-than-expected Q3 results.
Meanwhile, crude was up $1.33 to $57.68 per barrel. Natural gas was down $0.02 to $2.81 per 1 million BTU. Gold was down $29.20 to $1,463.90 an ounce, and silver down $0.58 to $17.02 an ounce. Copper was up $0.06 to $2.73 per pound.
Among energy ETFs, the United States Oil Fund was up 1.69% to $12.01 with the United States Natural Gas Fund was down 1.39% to $22.04. Among precious-metal funds, the Market Vectors Gold Miners ETF was down 2.57% to $26.50 while SPDR Gold Shares were down 1.75% to $137.99. The iShares Silver Trust was down 3.04% to $15.97.
Here's where the markets stood at midday:
NYSE Composite Index was up 70.28 points (+0.53%) to 13,421.85
Dow Jones Industrial Index was up 233.27 points (+0.85%) to 27,725.83
S&P 500 was up 15.94 point (+0.52%) at 3,092.74
Nasdaq Composite Index was up 61.90 points (+0.74%) to 8,472.45
FTSE 100 was up 9.76 points (+0.13%) to 7,406.41
DAX was up 109.57 points (+0.83%) to 13,289.46
CAC 40 was up 24.25 points (+0.41%) to 5,890.99
Nikkei was up 26.50 points (+0.11%) to 23,339.32
HSI was up 158.59 points (+0.57%) to 27,847.23
Shanghai Composite was up 0.12 points (+0.00%) to 2,978.71
NYSE SECTOR INDICES
NYSE Energy Sector Index was up 94.29 points (+0.97%) to 9,843.27
NYSE Financial Sector Index was up 56.69 points (+0.67%) to 8,482.95
NYSE Healthcare Sector Index was up 19.99 points (+0.12%) to 16,629.18
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