U.S. stocks posted strong gains on Thursday, driven by a rally in technology shares, even as uncertainty continued over potential progress in trade negotiations between the United States and China. The benchmark S&P 500 rose 1.4%, while the Nasdaq Composite advanced 1.9%, bolstered by broad-based strength in megacap technology stocks. The Dow Jones Industrial Average lagged, inching up 0.7%, pressured by a sharp 6% drop in shares of IBM.
Leading the gains were Nvidia, Meta, Amazon, Tesla, and Microsoft, each trading approximately 2% higher. The rally comes despite persistent concerns about the Trump administration’s assertive trade stance toward Beijing, which has dampened investor sentiment in the sector. In a statement issued overnight, China’s Ministry of Commerce dismissed speculation about ongoing trade talks, with spokesperson He Yadong stating that “all sayings” regarding negotiation progress should be disregarded.
He further demanded the removal of what he termed “unilateral” U.S. tariffs. His comments appeared to contradict earlier remarks from President Trump, who suggested a willingness to adopt a less confrontational approach with China. U.S. Treasury Secretary Scott Bessent reinforced a tone of potential cooperation on Wednesday, stating that Washington sees an “opportunity for a big deal” with Beijing. Currently, Chinese imports are subject to a 145% tariff imposed by the U.S., a policy shift announced earlier this month.
Despite the rebound in equities, some analysts expressed skepticism about the durability of Thursday’s rally. Ross Mayfield, investment strategist at Baird, cautioned against interpreting the market’s move as a definitive trend reversal, citing China’s explicit denial of negotiations. He attributed the market’s optimism to lingering hope that U.S. policymakers may choose dialogue over escalation. The S&P 500 remains down 4% since April 2, when President Trump unveiled the revised tariff structure.
Over the same period, the Dow has declined 5.7%, and the Nasdaq has shed 3.6%, reflecting broader investor concerns over the economic implications of a protracted trade dispute. According to Deutsche Bank, recent gains have largely been fueled by investor expectations that Washington may ease its trade position. Jim Reid, the bank’s global head of macro and thematic research, noted that market confidence is being sustained by the belief that further escalation could be avoided. – By MENA Newswire News Desk.