US. The shares traded higher on Thursday morning with Dow getting a lift for optimum performance from two components, while investors refused the latest trade developments after US President Donald Trump appeared to target China Telecommunications Group Huawei Technologies Co. with an emergency declaration against threats
During that time, economic data on US labor markets and housing markets came out better than expected, potentially countering trade concerns.
How is the large index index going?
Dow Jones Industrial Average
DJIA, + 1
increased 219 points, or 0.9% to 25.865, while the S&P 500 index
SPX, + 1.37%
increased 31 points, or 1.1% to 2,882. Nasdaq Composite Index
rose 96 points, or 1.2% to 7.918.
S & P 500 and Nasdaq have bounced back during the last three sessions to erase the ground lost in a Monday route triggered by an escalation of the US-China tariff battle. Both indices are now slightly positive during the week, while Dow has trimmed its weekly decline to 0.2%.
Read: The woman who nailed the 2018 stock exchange on the volatility resolution has kicked off an actively managed ETF
What drove the market?
Global shares have proved robust after the Trump administration hit a new salvo in a trading spade with China since Wednesday, issuing an executive order banning telecom equipment from countries considered "foreign opponents". The move seemed to target Huawei, which has been under pressure from the White House for months.
In addition, the Trade Department announced on Wednesday night that it would add Huawei to a list of entities engaging in "business that violates US national security and / or foreign policy interests", a feature that can greatly limit their purchases of US made chips, which it relies on for many of its products.
Other corners of the Trump administration offered reasons for markets to hope that a trade deal between the United States and China of any kind was still underway. Treasury Secretary Steven Mnuchin said Wednesday that the United States would "likely" meet with Chinese delegates again in Beijing after each side fired trade courses on the other.
A spokesman for China's Trade Department said the country opposed other countries facing unilateral sanctions against Chinese entities and that Washington should avoid affecting China-US relations, Reuters reported. The spokesman also said he did not have any information on the plans of an American trade delegation to visit China. The report said.
The cruise comes against the backdrop of trade tensions between the United States and China which had led to global stock market volatility in May, despite investors' interest in trading having slowed down in recent days.
At the same time, investors seem less worried that the United States will short-term trade tensions with other partners, including the European Union and Japan, after reports that Trump would delay a decision to introduce new tariffs on car imports and auto part up to six months.
Read: Can the stock market last long enough for Trump to win a trade war?
What economic data is in focus?
The number of Americans seeking unemployed benefits decreased by 16,000 a week ending May 11 to 212,000, the work department said on Thursday. It is below the 217,000 expected by economists demanded by MarketWatch.
Construction of new homes increased 6% in April from the previous month, the Department of Commerce said Thursday at an annual level of 1.24 million over the 1.21 million pace expected by economists, per MarketWatch survey.
The Philadelphia Fed manufacturing index rose to four months high in May, reaching 16.6 after registering 8.5 in April.
What do analysts say?
"I am quite surprised and impressed by the stock market's resilience and other risk assets in the face with all this uncertainty that goes beyond trade," said Jim Solloway, chief investment strategist at SEI investments, MarketWatch, adding that rising military tensions in the Middle East are another. Read: Is the stock market's investors happy with Iran?
"People are starting to place trading in more perspective," he added, certainly no one wins from a trade war But while looking at the numbers, we are still talking about a relatively small amount of fees associated with a $ 21 trillion economy, so what we have seen so far is not "as important as the general path to global growth," he said, adding that, overall, data on the global economy have shown marginal improvements in recent weeks, which has contributed to build investor confidence.
"It is difficult to continue with Trump White House at the moment. Following the escalation of the damaging trade war on both sides of the weekend, the markets faced a challenge on Wednesday as the reports emerged, suggesting that the US was prepared to delay tariffs. on cars from Europe and Japan, "wrote Connor Campbell, financial analyst at SpreadEx.
"And then the president looked when he looked like he was saying and explained a national emergency to protect American data networks from" foreign opponents "- that is, a big finger to China through an attack on Huawei. With 70 of its affiliates, now available on the Entity List, it will require official US government approval to purchase key parts and components from US companies. "