US index S&P 500 posts highest close since November on China trade war optimism

The S&P 500 hit a closing level high for 2019 and posted its highest close since November 8 on the back of news that the US and China trade war could be drawing to a close.

Investors revelled in the news that talks were progressing well after top trade negotiators from both countries wrapped up a week of talks on some of the most challenging issues.

Read more: US and China extend talks as end to trade war nears

The index’s technology sector was up 1.3 percent, leading the gains among the 11 major S&P sectors, while industrials affected by the trade war rose 0.6 per cent.

The S&P 500 gained 17.79 points to 2,792.67, rising 0.64 per cent, while the Dow Jones rose 0.7 per cent to 26,031.81.

The Nasdaq gained 0.91 per cent, or 67.84 points to close on 7,527.55

The S&P 500 is now up about 19 per cent on its December low thanks in part to optimism that the trade war will soon be over, leaving concerns of an economic slowdown far behind.

The current tariffs imposed on China by the US are set to increase from 10 per cent to 25 per cent on March 1, but US president Donald Trump indicated that progress had been made and said talks would continue in Washington next week.