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S&P 500 up in choppy action after Trump comments on China

Published 05/29/2020, 06:58 AM
Updated 05/29/2020, 03:30 PM
© Reuters. New York Stock Exchange opens during COVID-19
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By Caroline Valetkevitch

(Reuters) - The S&P 500 was up in late, choppy trading Friday after President Donald Trump made comments on China that appeared less worrisome for the U.S. economy than investors apparently had feared.

Stocks initially extended losses after Trump said China broke its word on ensuring the autonomy of Hong Kong, the former British colony, and said the United States is terminating its relationship with the World Health Organization, something he had threatened to do earlier this month.

"He began speaking in a very tough tone. The market was worried he was going to announce something substantial, something detrimental to the U.S. economy. Then as he spoke it became clear the actions being taken were not going to be as dramatic as originally feared," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.

Increased tensions between the United States and China are taking some shine off the market as it was about to wrap up another month of strong gains.

The Dow Jones Industrial Average (DJI) rose 3.99 points, or 0.02%, to 25,404.63, the S&P 500 (SPX) gained 8.35 points, or 0.28%, to 3,038.08, and the Nasdaq Composite (IXIC) added 85.58 points, or 0.91%, to 9,454.57.

The S&P 500 opened weaker on Friday amid the concerns over the U.S.-China tensions.

© Reuters. New York Stock Exchange opens during COVID-19

Despite worsening relations between the world's two largest economies, expectations of a quick economic recovery from the coronavirus pandemic have driven the S&P 500 (SPX) up more than 30% from its March lows.

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