U.S. stocks strengthen on earnings, shutdown deal optimism
Stocks rose as corporate earnings bolstered confidence in the economy and President Donald Trump said U.S. lawmakers agreed to re-open the government on an interim basis. Treasuries yields rose and the dollar weakened against most of its major peers.
The Dow Jones Industrial Average and Nasdaq Composite indexes erased their first weekly declines of the year to finish in the green, while the S&P 500 finished marginally lower. The rally in emerging-market assets picked up steam on speculation the arrival of a Chinese delegation in Washington next week may help pave the way for a trade deal. Adding to optimism were reports that the Federal Reserve is weighing an end to a program of reducing its balance sheet sooner than previously expected, a move that could ease measures of financial conditions.
“My sense is there’s potential for the risk taking channel to kick in,” said Tim Alt, a portfolio manager at Aviva Investors.