Major US stock indexes have risen significantly, as hopes for a decline in interest rates by the Fed have mitigated fears of a further escalation of the trade war with China after recent comments by US President Donald Trump.

Trump said he would decide on additional tariffs for Chinese imports “probably immediately after the G-20.” He made this statement after threatening to introduce import tariffs on Chinese goods for another $ 300 billion.

Investors also tracked ongoing negotiations between the US and Mexico. Trump said yesterday on Twitter that although there was progress in immigration between the two countries, this is “not enough” and recalled that if the parties do not agree, tariffs at the 5% level will be introduced already on Monday with a monthly increase according to the schedule.

Investors are also analyzing US statistics. According to the Ministry of Labor, the initial applications for unemployment benefits did not change and amounted to 218,000, taking into account seasonal fluctuations for the week ending June 1. The data for the previous week was revised to show 3000 requests received more than previously reported. Economists predicted that the number of applications will remain unchanged at 215,000. Recent data suggests that the labor market remains in good condition, despite a slowdown in economic activity.

A report by the Department of Commerce showed that the US trade deficit unexpectedly fell in April, as imports of goods fell to a 15-month low, offsetting a reduction in exports caused by aircraft. According to the report, the trade deficit fell by 2.1% to $ 50.8 billion. The March data were revised upward to show that the trade gap widened to $ 51.9 billion, instead of the previously reported $ 50.0 billion. Economists predicted that the trade deficit would increase to $ 50.7 billion . in April. At the same time, the trade deficit with China increased by 29.7% to $ 26.9 billion.

Almost all of the components of DOW finished trading in positive territory (27 out of 30). The growth leader was Chevron Corp. (CVX; + 2.83%). The Travelers Companies (TRV; -0.55%) were an outsider.

All sectors of the S & P recorded an increase. The largest growth was shown by the base materials sector (+ 1.3%).

At the time of closing:

Dow 25,723.71 +184.14 +0.72%

S & P 500 2,843.69 +17.54 +0.62%

Nasdaq 100 7,615.55  +40.08 +0.53%

U.S. stock-index futures traded flat on Thursday, as hopes of an interest rate cut offset an escalation in trade tensions after the U.S. President Donald Trump threatened fresh tariffs on Chinese goods.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

DuPont (DD) initiated with a Hold at SunTrust; target $79

Apple (AAPL) initiated with a Outperform at Evercore ISI; target $205

Travelers (TRV) downgraded to Mkt Perform from Outperform at Keefe Bruyette; target $153