S&P 500, Dow slip as trade-fueled rally pauses

S&P 500, Dow slip as trade-fueled rally pauses

US stocks ended slightly higher on Friday, keeping weeklong gains intact, after President Donald Trump said that he had not yet agreed to the USA paring back tariffs in stages as part of the so-called phase 1 trade deal. -China trade war. The S&P 500 and Treasury yields fell after President Donald Trump said he had not agreed to roll back any tariffs, but a late push in the afternoon returned indexes to record heights.

Technology shares also supported the market, including Microsoft, which rose 1.2%.

The week has been dominated by trade news, sending stock and bond yields sharply higher despite Friday's modest moves.

However, Trump said on Friday he had not agreed to roll back the tariffs, although Beijing would like him to do so.

"Until we actually see some type of trade deal, the level of uncertainty - which ultimately will translate into volatility in the market - will persist", said Brian O'Reilly, head of investment strategy at the Dublin-based Mediolanum International Funds.

"The president is very set in his way and the Chinese have their viewpoint too, so it seems it's going to take a bit longer for the trade deal to be nailed down".

At 11:31 a.m. ET the Dow Jones Industrial Average was up 229.76 points, or 0.84%, at 27,722.32, the S&P 500 was up 16.17 points, or 0.53%, at 3,092.95 and the Nasdaq Composite was up 61.96 points, or 0.74%, at 8,472.59.

Helping to boost the S&P 500, Walt Disney Co gained 3.8% a day after it reported quarterly results that showed it spent less than it had projected on its online streaming service, Disney+.

Still, the S&P 500 is on track for its best year since 2013, while the Nasdaq and blue-chip Dow are eyeing yearly gains after dropping in 2018, partly propelled by a rosy third-quarter earnings season. "Technology stocks and companies like 3M, which have a lot of worldwide exposure and are cyclically dependent are going to be getting the most attention today", Pavlik said. The S&P 500 and Nasdaq Composite are both up 0.6% for the week through Thursday's close. The apparel retailer also slashed its full-year earnings forecast.

Energy drinks maker Monster Beverage gained 4.7% after posting a better-than-expected third-quarter profit and announcing a $500 million share buyback plan.

Declining issues outnumbered advancers for a 1.12-to-1 ratio on the NYSE.

The S&P index recorded 51 new 52-week highs and five new lows, while the Nasdaq recorded 99 new highs and 60 new lows.

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