On Friday, U.S. stocks finished off the first quarter’s last trading day on a firm note. The S&P 500 showcased its finest quarterly gain since 2009. It resulted from the optimism by the latest round of trade talks between China and the United States.
Both the countries reported progressive trade talks, which came to an end in Beijing on Friday. The trade talks, even called as “candid and constructive”, were focused on resolving a nine-month conflict among the two largest economies of the world.
In the coming week, a Chinese delegation will reach Washington to have another round of discussions. Eventually, the prospects of an end to this trade war in the near term give a boost to investor confidence. In turn, markets are closing with great gains.
Meanwhile, the S&P 500 gained 13.1 percent as ending its quarter with the best quarterly gains. Last time, the benchmark showcased these kinds of results in the third quarter of 2009 and the first quarter of 1998.
Industrials sensitive to trade added 1 percent, whereas chipmakers having a big revenue exposure to China also rose. Here, the Philadelphia chip index moved up by 1.6 percent. On the other hand, the broader technology sector climbed 1 percent.
The Nasdaq Composite jumped 0.78 percent or 60.16 points to 7,729.32 and the Dow Jones Industrial Average gained 211.22 points to end the session with 25,928.68. In terms of the quarter, the Nasdaq moved 16.5 percent up, considered its best quarter since 2012 and the Dow rose 11.2, showcased its biggest rise for the quarter since 2013.
All major indexes drafted gains of around 1 percent for this week individually and even registered earnings for this month. Moreover, Lyft Inc climbed over 20 percent following its debut on the Nasdaq while shares ended up with 8.7 percent.