U.S. stocks are rallying Friday morning as trade tensions between the United States and China continue to ease.
Continue Reading Below
China's Foreign Ministry said Friday that Chinese and U.S. trade negotiators are maintaining effective communication. There were hopes U.S.-China talks next month may produce progress toward ending a costly trade war over trade and technology.
All three of the major averages gained 0.5 percent, with the Dow Jones Industrial Average up 150 points before pulling back.
|I:DJI||DOW JONES AVERAGES||25164.61||+169.50||+0.68%|
|I:COMP||NASDAQ COMPOSITE INDEX||9176.59336||-163.63||-1.75%|
Tesla shares were climbing after the electric-car maker announced it was raising prices in China in response to Beijing hiking tariffs on U.S. autos.
On the earnings front, Dell Technologies was surging after reporting better-than-expected second-quarter results amid strong PC sales.
|DELL||DELL TECHNOLOGIES INC.||44.47||+0.01||+0.02%|
Meanwhile, Ulta Beauty was under significant pressure after missing on earnings and lowering its full-year guidance.
|ULTA||ULTA BEAUTY INC.||243.60||+5.62||+2.36%|
University of Michigan consumer sentiment was released Friday morning, falling to 89.8 in August from 98.4 in July as consumers expressed concerns regarding tariffs. It was the biggest monthly decline since December 2012.
Friday's stock market rally has put pressure on Treasurys. Selling had yields along the curve higher by about 2 basis points.
On the commodities front, both West Texas Intermediate crude oil and gold were slightly lower.
The major European markets were trading higher on Friday, adding to recent gains. Germany's DAX was leading the way with a gain of 1.4 percent.
Asian stocks finished mixed. Japan's Nikkei booked a gain of 1.2 percent while China's Shanghai Composite was down 0.2 percent.
Ken Martin contributed to this report.