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Financial traders monitor data inside Frankfurt Stock Exchange in Frankfurt, Germany. Photographer: Jasper Juinen/Bloomberg

(bloomberg)

(Bloomberg) -- U.S. stocks rose in light summer trading Friday on strength in technology hardware shares and optimism for a resolution in America’s trade dispute with China amid reports that President Donald Trump and Chinese President Xi Jinping will meet in November in an attempt to end the roadblock. Crude climbed to just below $66 a barrel, the dollar fell and Treasuries were stable.

All major equity benchmarks surged following the U.S.-China news. The S&P 500 Index erased an earlier decline and notched its sixth weekly advance in the last seven weeks. Department store chain Nordstrom Inc. was the best performing company in the benchmark as investors responded to its strong second-quarter results and healthy profit outlook for the year.

The Nasdaq 100 Index rebounded from weakness in semiconductors after Nvidia Corp. and Applied Materials Inc. warned after the market closed Thursday that their revenues were running below analyst forecasts. The Philadelphia Stock Exchange Semiconductor Index dropped 0.7 percent, its fourth consecutive decline.

“Investors should avoid the urge to become too bearish too quickly,” Brian Rauscher, chief portfolio strategist at Robert W. Baird & Co., wrote in a note to clients Friday. “We urge investors to keep their attention focused on the still robust backdrop of corporate profits.”

In Europe, equities rose despite weakness in banks and technology shares. Most Asian markets advanced. Canada’s dollar jumped after inflation in July blew past estimates. And developing-nation stocks gained but remained close to the technical definition of a bear market.

“The roadmap to a potential November deal helps to increase the possibility that Trump ‘punts’ on September 5, as talks continue, while setting up for a ‘win’ right before midterms,” Naufal Sanaullah, chief macro strategist at EIA All Weather Alpha Partners, wrote in a note to clients Friday. “We see these as very bullish developments for EMs.”

Turkey’s lira erased an early gain and retreated after rising more than 15 percent in three days. A Turkish appeals court refused to release American pastor Andrew Brunson -- who the Trump administration says is being held illegally -- which the U.S. promised would trigger further sanctions in retaliation. With a holiday closing Turkey’s stock markets for most of next week, traders took a cautious tone.

Elsewhere, commodities rose as natural gas jumped and copper rebounded. But zinc headed for its worst weekly performance since 2011.

Terminal users can read more in our Bloomberg Markets Live blog here.

These are the main moves in markets:

Stocks

  • The S&P 500 rose 0.3 percent to 2,850.13.
  • The Stoxx Europe 600 Index added 0.3 percent.
  • The MSCI ACWI climbed 0.4 percent.
  • The MSCI Emerging Market Index advanced 0.4 percent.
  • The MSCI Asia Pacific Index gained 0.7 percent.

Currencies

  • The Bloomberg Dollar Spot Index declined 0.5 percent.
  • The euro rose 0.5 percent to $1.1439.
  • The Japanese yen increased 0.3 percent to 110.59 per dollar, the strongest in a month.
  • The Turkish lira erased an earlier gain and slumped 3.3 percent to 6.0301 per dollar.

Bonds

  • The yield on 10-year Treasuries was little changed at 2.8641 percent.
  • Germany’s 10-year yield declined two basis points to 0.305
  • Italy’s 10-year yield was essentially unchanged at 3.121 percent.

Commodities

  • The Bloomberg Commodity Index climbed 0.4 percent.
  • LME zinc dropped 0.1 percent to $2,389.50 per metric ton and was down 6.2 percent for the week.
  • WTI crude jumped 0.6 percent to $65.84 a barrel.
  • Gold gained 0.8 percent to 1,183.92 an ounce.

--With assistance from Yakob Peterseil, Todd White and Luke Kawa.

To contact the reporter on this story: Eric J. Weiner in New York at eweiner12@bloomberg.net

To contact the editor responsible for this story: Jeremy Herron at jherron8@bloomberg.net

©2018 Bloomberg L.P.

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