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Stocks rebound as hopes rise that trade tensions will ease

Trader Jonathan Corpina works on the floor of

Trader Jonathan Corpina works on the floor of the NYSE on Thursday. Credit: AP / Richard Drew

Wall Street capped a turbulent week with a late-day rally Friday after shaking off an early slump triggered by the latest escalation in the trade war between the U.S. and China.

The market fell sharply in the early going after the U.S. raised tariffs on $200 billion worth of Chinese goods when negotiators failed to reach a deal. Hours later, remarks from President Donald Trump and Treasury Secretary Steven Mnuchin gave investors reason for optimism.

First, Mnuchin told CNBC that the trade talks had been "constructive," which spurred the market's rebound. Then, in a late-afternoon tweet, Trump suggested the tariffs could be removed and that the trade talks "will continue."

The afternoon pickup led to a broad reversal in the market, leaving only health care stocks with a loss. Still, the buying did little to blunt the overall sharp decline for stocks this week. The benchmark S&P 500 index finished with its worst weekly loss of the year, 2.2 percent.

The S&P 500 index rose  0.4 percent, to 2,881.40. The broad index is still up 14.9 percent for the year.

The Dow Jones Industrial Average gained 114.01 points, or 0.4 percent, to 25,942.37. It was down as much as 358 earlier. The Nasdaq added 0.1 percent, to 7,916.94. -- AP 

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