US equities closed higher on Friday, with the S&P 500 and the Nasdaq ending at five-month highs, as market sentiment was supported by encouraging headlines on US-China trade negotiations and Chinese guarantees of impending economic stimulus.
How did important indexes go?
The S&P 500 index
SPX + 0.50%
climbed 14 points, or 0.5%, to 2,822.48 and the Nasdaq Composite Index
COMP, + 0.76%
advanced 57.62 points, 0.8%, up to 7,688.53. The industrial average of Dow Jones
DJIA + 0.54%
achieved 138.93 points, or 0.5%, to 25,848.87.
For the week, the Dow rose 1.6%, the best since February 15 and the Nasdaq rose 3.8%, the strongest since the 28th in the tech-centric market, while the S&P 500 2.9 % for the largest weekly gain since November 30. , according to FactSet data.
What drove the market?
Investors consumed reactions from Chinese Prime Minister Li Keqiang, Beijing's number 2 leader after President Xi Jinping, who expressed optimism that a trade agreement between China and the US could be reached that would suit both parties.
He said the parties may have been several weeks away from a tariff agreement, but described China as "very responsible and reasonable." Apart from that, US finance minister Steven Mnuchin, speaking to reporters after his testimony in the Senate before a financial committee, said no, an appointment was made for a meeting between Xi and Trump to finalize a deal, adding that "there is still a lot of work to be done".
Trade negotiations between the two largest economies in the world were the biggest concerns for investors, as a heated war between the two economies could harm the entire world.
Li also focused on weakness in the second largest economy in the world and promised to maintain strong incentives such as lowering interest rates, lowering bank reservation rates and lowering taxes for consumers and businesses, hoping that a stable Chinese economy could be a recent trend. slowing global growth.
Read: Don't look now, but global economic data is starting to surprise investors in a good way
What data was the focus on?
The Empire State index of the New York Fed fell to 3.7 in March from 8.8 in the previous month, an almost two-year low. Economists expected a reading of 10, according to a study by Econoday.
US industrial production increased by 0.1% in February, below the 0.4% increase expected by economists, according to a MarketWatch survey. However, the January figure was increased to show a decrease of 0.4%, rather than a decrease of 0.6% as previously estimated.
Vacancies in the United States rose to 7.58 million in January, the third highest level recorded, according to the Labor department.
Consumer confidence rose to 97.8 in March from 93.8 in February, according to a first reading of the consumer confidence index of the University of Michigan. The reading was higher than the 95 level that is expected by economists who are questioned by MarketWatch.
What did strategists say?
The initial increase was due to Li's comments that the Chinese government committed itself to take additional incentives to support the second largest economy in the world if necessary, said Brent Schutte, chief investment strategist at Northwestern Mutual Asset Management, at MarketWatch.
"You see that companies with a smaller market capitalization are doing well, indicating a risk of voting on Wall Street," he added, pointing to strong consumer confidence data as a reason to believe that the expansion of American economy offers more space.
"This risk of sentiment was primarily based on widespread optimism following President Trump's recent statement about a & # 39; very responsible and reasonable China & # 39; the US president also added that he would -4 weeks of news about a trade agreement with China and that this could lead to an extension of this year's rally on shares, "said Pierre Veyret, a technical analyst at ActivTrades.
Read: Why some investors say that technical stocks are becoming less risky
Counterpoint: The long-running market bull sees a disturbing parallel between today and March 2000
Which shares were in focus?
Shares of Facebook Inc.
decreased by 2.5% after the social media company said two senior executives left the company.
AMZN + 1.55%
The shares increased by 1.6% after KeyBanc Capital increased its rating on the share to overweight.
Shares of Boeing Inc.
BA, + 1.52%
achieved 1.5% reports that it would issue a software update that could alleviate problems that led to the foundation of its 737 8 Max planes in the United States and beyond.
shares sank by 20% after the company announced a deal to merge with privately owned Option Care Enterprises Inc.
Shares of Ulta Beauty Inc.
Ulta, + 8.29%
rose 8.3% after the beauty product retailer announced the fourth quarter results that exceeded expectations at the end of February, while online sales increased.
How were other markets traded?
In Asia, the shares closed higher, with the Nikkei 225 from Japan
NIK, + 0.77%
China & # 39; s Shanghai Composite Index
SHCOMP, + 1.04%
and the Hong Kong Hang Seng Index
HSI + 0.56%
all increase more than 0.5%.
European stocks also rose with the Stoxx Europe 600
SXXP, + 0.68%
On commodity markets, crude oil prices
ended lower while gold
GCJ9, + 0.56%
settled higher, and the US dollar
pushed lower against his & # 39; s.
-Mark DeCambre contributed to this article
Provide critical information for the US trading day. Subscribe to the free Need For Know newsletter from MarketWatch. Register here.