Global stocks slipped Friday but remained on track to finish the week with gains as investors awaited progress between the U.S. and China on trade.
The week has been dominated by trade headlines, sending stock and bond yields sharply higher despite Friday’s modest moves. The Dow breached its first new high since July, while the S&P 500 and Nasdaq also touched records.
Investors also grew more confident about economic growth, piling into shares of cyclical stocks during the week and unraveling bets on safer investments like Treasurys. Shares of financials and energy companies in the S&P 500 have been some of the biggest winners this week.
The yield on the 10-year Treasury note closed at its highest level since July as bond prices fell. A bond market signal that had previously been flashing red that a recession is coming has eased up.
Still, some of the enthusiasm lifting stocks earlier in the week waned Friday, highlighting the impact of trade sentiment on stock and bond investors.
Although markets had begun betting that a partial trade deal would be accompanied by a rolling-back of existing tariffs, President Trump said Friday that the U.S. hadn’t committed to offering such concessions.
Adding to enthusiasm among, earnings have largely been better than investors had expected.
Walt Disney shares climbed 4.2% after its earnings beat analysts’ expectations. Gap slumped about 8% after the apparel maker pared its profit targets for the year and said Chief Executive Art Peck would step down immediately.
Oil prices also slipped as the cautious mood on the U.S.-China trade spat spilled over into investors’ assessment of the global economic outlook. Brent crude, the global oil benchmark, fell about 2%.
Trader Georgi Bozhidarov