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Stocks erase weekly losses as China trade-war tensions simmer

Business Insider

new york stock exchange trader happyMario Tama / Getty Images


Stocks erased weekly losses on Thursday after China continued to stabilize the yuan, alleviating worries of a currency war breaking out with the US. It also calmed nerves around the global trade conflict.

China set the yuan’s fixing price just above 7 yuan per dollar — a higher-than-expected level — prompting investors to exit safe haven assets like bonds and gold.

Elsewhere, the yield on the 10-year Treasury note extended its weekly slump. Gold also dropped off its 6-year high and dipped below $1,500 during intraday trading. 

Here’s a look at the major indexes as of the 4:00 p.m. close: 

Chinese said its exports rebounded from a 1.3% decline in June, and climbed 3.3% in July from the same month last year as shipments to Europe and Southeast Asia increased. The upbeat data lifted some uneasiness over trade tensions potentially pushing the global economy toward a recession. 

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Stocks experienced a sharp sell-off earlier in the week after China allowed the value of its currency to drop below 7 yuan per US dollar, sparking the initial fears of the trade war evolving into a battle of currencies. On Wednesday, Central banks in Thailand, New Zealand, and India took measures to prop up economic growth by lowering interest rates prompting a rally in global stocks. 

President Trump doubled-down on his criticism of the Federal Reserve on Thursday writing in a tweet that the central bank has "called it wrong at every step of the way." The president also said he was disappointed with the strength of the US dollar, which he has consistently supported weakening to make US exports cheaper and more competitive. 

Within the S&P 500, these were the largest gainers:

And the largest decliners:

Warren Buffet-backed Kraft Heinz slid as much as 16% to a record intraday low after the company’s delayed-earnings results missed expectations. The food conglomerate also announced $1.2 billion in business write-downs. Buffet owns about 27% of the company. 

Shares of Lyft rose as much as 9% after the ride-sharing company reported second-quarter earnings that surpassed Wall Street forecasts. The company recorded $867 million in revenue during the second quarter, with a loss per share of $0.68. Analysts expected revenue of $809 million and a loss per share of $1.74. 

Every sector within the S&P 500 rose on Thursday, with both technology and energy stocks gaining more than 2%. 

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