U.S. stocks finished broadly higher Wednesday after President Donald Trump indicated that a deal to resolve the long-running, costly trade dispute with China could happen soon.
Trump’s remarks, in addition to a sharp increase in sales of new U.S. homes, helped reverse an early slide for stocks.
The midmorning release of a rough transcript of a July phone call between Trump and Ukraine’s president that is at the center of a congressional impeachment inquiry into Trump didn’t have much of an impact on the market. That suggests traders are largely shrugging off the potential consequences the political drama might have for stocks at least for now.
The S&P 500 index rose 18.27 points, or 0.6%, to 2,984.87. The Dow Jones Industrial Average gained 162.94 points, or 0.6%, to 26,970.71. The Nasdaq climbed 83.76 points, or 1.1%, to 8,077.38. The Russell 2000 index of smaller companies picked up 17.07 points, or 1.1%, to 1,550.65.
The S&P 500, Dow and Nasdaq are on track to end the third quarter with modest gains.
Stocks got off to a downbeat start as traders continued to weigh the implications of the House Democrats-led impeachment inquiry into Trump. Stocks continued to recover after the release of the Trump phone call transcript.
The market then climbed into positive territory after Trump, speaking to reporters at the United Nations, said China wants “to make a deal very badly,” adding that “it could happen sooner than you think.”
Trump did not elaborate. Talks between top-level officials aimed at resolving the costly trade war are expected to take place next month.