U.S. stocks end higher amid trade optimism

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U.S. stocks closed higher on Friday, with the Dow and the Nasdaq posting their eighth consecutive weekly gains as investors grew hopeful that the United States and China would hammer out an agreement resolving their protracted trade war.

The Dow Jones Industrial Average was up 443.86 points, or 1.74 percent, to 25,883.25. The S&P 500 increased 29.87 points, or 1.09 percent, to 2,775.60. The Nasdaq Composite Index rose 45.46 points, or 0.61 percent, to 7,472.41.

Talks between the United States and China will resume in Washington DC next week, with both sides saying progress has been made toward resolving the two countries' contentious trade dispute.

Tariff-vulnerable industrials provided the biggest lift to the blue-chip Dow, led by bellwethers Boeing Co, 3M Co, United Technologies Inc, and Caterpillar Inc.

VCG Photo

In 10 minutes after the market opened, the Dow Jones rose more than 250 points or over one percent and the S&P 500 was up about 0.7 percent, close to a ten-week high.

The reaction on Wall Street was muted to the declaration of U.S. President Donald Trump Friday on a national emergency over the U.S. southern border with Mexico in order to secure funding to build a border wall.

"Solving the trade issue could give global growth the boost it needs,” said David Carter, chief investment officer at Lenox Wealth Advisors in New York. “Absent a tariff solution; growth will continue to slow.”

U.S. industrial production fell 0.6 percent in January, which marks the first decline in eight months, the U.S. Federal Reserve said Friday.

Manufacturing alone sank 0.9 percent, the worst decrease in eight months.

(With inputs from Reuters)