The major equity indexes were higher on Thursday as top technology names hit record highs and industrials rebounded from losses driven by trade worries the day before.
CA rose 18.7 percent and was the largest percentage gainer in the S&P 500 after chipmaker Broadcom announced a surprise $18.9-billion deal to buy the business software company. Broadcom fell 13.7 percent.
Facebook, Microsoft and Amazon hit all-time highs and, along with Apple and Alphabet, drove gains in the S&P 500 and Nasdaq. Microsoft rose 2.2 percent to $104.19, sending the company value above $800 billion for the first time, joining Apple, Amazon and Alphabet in the $800 billion club and putting it in line as a contender to be the first U.S. company to reach a $1 trillion market capitalization.
The technology index rose 1.8 percent, the day’s best-performing sector, and the group is now leading year-to-date gains among sectors. The S&P industrials index rose 1.1 percent. Health care also gained about 1.1 percent.
The United States late Tuesday threatened to impose tariffs on $200 billion worth of Chinese goods. China said on Thursday the two countries have not been in touch about restarting talks and while it does not want a trade war, it would fight if necessary.
Boeing and Caterpillar, among the hardest hit by the trade dispute, rose more than 1 percent each on Thursday, aiding the Dow.
Earnings will take center stage Friday, when several Wall Street banks, including JPMorgan Chase, report results. Corporations making up the S&P 500 index are expected to post second-quarter earnings growth of approximately 21 percent, according to Thomson Reuters data.
Delta Air Lines rose 1.8 percent, and lifted other airline stocks, after the carrier’s quarterly profit topped estimates on higher average fares.
In a sign that labor market conditions remained robust in early July, weekly jobless claims hit a two-month low last week, the Labor Department said.
The consumer price index barely rose in June, but the underlying trend continued to point to a steady buildup of inflation pressure that could keep the Federal Reserve on a path of gradual interest rate increases.
Approximately 5.8 billion shares changed hands on the major domestic equity exchanges as compared to a 6.9 billion share daily average over the past 20 trading days, according to Thomson Reuters data.
Unemployment Claims Fall
Other data on Thursday showed first-time applications for unemployment benefits dropped to a two-month low last week as the labor market continues to tighten.
According to the Labor Department initial claims for state unemployment benefits fell by 18,000 to a seasonally adjusted 214,000 for the week ended July 7, the lowest level since early May. That suggests robust labor market conditions prevailed in early July. The economy created 213,000 jobs in June.
A tightening labor market and rising raw material costs are expected to push up inflation through next year.