The Dow Jones and S&P 500 each made all-time highs earlier this year of 26,616.71 and 2,872.87, respectively.
USA stocks recouped some losses on Friday morning after President Donald Trump's top economic adviser Larry Kudlow said negotiations between the United States and China over trade differences would start soon. The president's top economic adviser said the USA and China are holding "back-channel discussions" to resolve an escalating trade dispute that has unsettled global financial markets.
Investors put aside their worst fears from the US-China trade dispute to chase battered blue-chip stocks such as Boeing and Caterpillar.
"The ratcheting up of trade tensions clearly carries risks". That followed a day of stock market gains in the United States as investors appeared to warm to the idea that the barbs between Washington and Beijing were all talk. The Williams Percent Range or Williams %R is a technical indicator that was created to measure overbought and oversold market conditions. CNNMoney's Fear and Greed index sank further into "extreme fear" territory.
Despite the short-term market turbulence, investment pros are still hopeful that a full-fledged trade war will not break out.
On trade, The Trump administration plans to release a package of proposed punitive measures aimed at China that include tariffs on imports worth at least $30 billion.
Industrial companies might face the worst pain from tariffs, as they could find themselves dealing with higher costs for components imported into the US while the duties on their goods in China harm their sales.
Markets in mainland China were closed. But Wall Street began to reassess that view as the administration sent conflicting signals throughout the day.
"The market does not like uncertainty and right now we have a lot of it".
In regards to backing down in the potential trade war, Mr. Trump said on WABC Radio's, Bernie & Sid in the Morning show, "If I did that, I'm not doing my job".
"The market is getting more concerned about the possibility of a trade war between the United States and China", said Tom Cahill, portfolio strategist at Ventura Wealth Management. But he also stressed there was an open line of communication, saying: "This is a moderate, tempered approach that we are taking".
U.S. stocks ended the week with deep selloff, leaving them lower the for the five days as the White House's latest trade bluster rattled global financial markets.
"China, which is a great economic power, is considered a Developing Nation within the World Trade Organization", the president tweeted on Friday.
The sell-off accelerated in the final two hours of trading after Fed Chief Jerome Powell indicated the central bank would continue hiking rates this year. "So the ability of the equity markets to push significantly lower is going to be limited", said John Brady, senior vice president at R.J.
White House press secretary Sarah Huckabee Sanders, meanwhile, praised the President for strengthening the US economy, ignoring a Labor Department report noting that only 103,000 jobs were added in March, falling short of the 185,000 that economists had predicted. The institutional investor acquired 43,242 shares of the company's stock, valued at approximately $6,060,000. In February, an unexpected jump in wage growth set off inflation alarm bells and caused stocks to plunge.