Stocks crawled higher in morning after a deeper selloff overnight, trailing news that a representative at China's Ministry of Foreign Affairs, said China "hopes the US will meet China halfway and implement the consensus reached by the two leaders during their meeting in Osaka", generating a positive outlook for a resolution between the two countries.
US government bonds have been among the loudest and earliest to cry out warnings about the economy.
The S&P 500 rose modestly in morning trading and clawed back a fraction of its steep losses from the prior day, when stocks tumbled after the bond market sent out a fairly reliable warning signal of recession. Even after the slide in yields eased Thursday, the USA bond market continued to show concern as yields ended broadly lower.
That news arrived after China initially said it has to take necessary countermeasures for the latest USA tariffs on $300 billion of Chinese goods, adding the us tariffs violated a consensus reached by leaders of two countries, which drove the market lower overnight.
"What you're seeing really is what's been driving the market the last couple of weeks: Trade tensions as well as yield curve stress", said Lindsey Bell, investment strategist at CFRA.
The S&P 500 rose 7 points, or 0.2%, to 2,847.60.
Earlier in Asia, .Japan's benchmark Nikkei 225 recouped early losses to gain 0.1% and finish at 20,418.81.
Tariff sensitive chipmaker, which staged a comeback a day earlier, were also down.
The S&P 500 was up 0.2%, as of 3:25 p.m.
Other indexes didn't catch the bounce.
Traders are betting on a one-in-five chance of a 50 basis point interest rate cut from the Federal Reserve, while expecting aggressive easing from the European Central Bank at its policy meetings in September.
In the U.S., Walmart shares surged 4.4% and helped to steady the market after it said it made a bigger profit in the last three months than Wall Street expected, thanks in part to strong online sales of groceries.
Several other major economies, including Japan, Germany, Italy and the United Kingdom, appear to be heading toward recessions, and China is growing at its slowest pace in three decades. In late trading Thursday the 10-year yield stood at 1.52 percent.Читайте также: Kashmir: After 12 Days of Clampdown, Govt Announces Restrictions Will Be Eased
The yield on two-year and 10-year Treasury bonds inverted for the first time since June 2007.
Banks, which have lost almost 8 per cent this month pressured by tumbling bond yields, were the top gainers on Friday up 2.4 per cent to log their best session since early April. When investors worry about weaker economic growth and inflation, they tend to pile into Treasurys, which pushes up their prices and in turn pushes down yields.
Former Fed Chair Janet Yellen said the markets could be wrong in anticipating a recession because of the yield curve inversion.
He has pledged to win a trade war with China popular with voters in Rust Belt states that were crucial to his 2016 victory.
Companies' reluctance to invest amid the uncertainty of the trade war, has already slowed growth.
The S&P index recorded eight new 52-week highs and 35 new lows, while the Nasdaq recorded eight new highs and 126 new lows.
"Exhausted traders the world over head into the weekend in a more buoyant mood", said Craig Erlam, senior market analyst at OANDA.
As recession warnings flashed from the bond market, Wall Street plummeted lower overnight.
All of the 11 major S&P sectors were higher, with technology stocks providing the biggest boost.
General Electric sank 9.5% on news that the industrial conglomerate is being accused of hiding its financial problems by Harry Markopolos, the prominent whistleblower known for outing Bernie Madoff.
The Dow dropped by 3 percent, more than 800 points, Wednesday after fears of a recession emerged.
Energy stocks also sank sharply, hurt by another drop in the price of crude oil on worries that a weakening global economy will drag down demand. Benchmark U.S. crude added 82 cents to $55.29 while Brent crude, the global standard, rose $1.01 to $59.24. Brent crude, the global standard, lost $1.25 to close at $58.23. It fell 76 cents to $54.47 per barrel Thursday.
AMS, Infineon Tech and STMicroelectronics rose between 1.2 per cent and 2.1 per cent.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2019 Copyright.
Автоматизированное извлечение информации сайта запрещено.
Код для вставки в блог