Market Highlights

Wall Street traders drove stocks higher amid solid signals from Corporate America and hopes that tensions between the world’s two largest economies are cooling. Bond yields edged lower. With the earnings season well underway, about 85% of the companies in the S&P 500 reporting results so far have beaten profit estimates. That’s helped fuel a rebound in equities, with the benchmark notching its best two-day gain since June. Sentiment was also buoyed by expectations the trade war will de-escalate as the US and China return to the negotiating table. The dollar advanced against all major peers and global shares came off their session highs as investors weighed trade tensions and the impact of upcoming US inflation data. MSCI’s all-country stock index erased earlier gains. Japanese shares all but wiped out an upward move as the pro-stimulus Sanae Takaichi won a key vote to become the nation’s prime minister. S&P 500 and European futures erased an earlier advance. Chinese shares rallied.