Nation & World

Stocks advance on tariff bets

But oil's bull run ends

Rueters

The S&P 500 Index rose for a second day. Above, traders work on the floor at the New York Stock Exchange on Wednesday.
Rueters The S&P 500 Index rose for a second day. Above, traders work on the floor at the New York Stock Exchange on Wednesday.

At the markets’ close on Wednesday, stocks climbed on optimism Mexican tariffs will be avoided, while Treasury yields fell as data bolstered rate-cut wagers.

Oil entered a bear market after U.S. supplies jumped the most in almost 30 years.

The S&P 500 Index rose a second day as President Donald Trump said Mexico wants to make a deal and White House trade adviser Peter Navarro told CNN the nation still has time to prevent the tariffs from taking effect.

Trump’s tariff threat has led several economists to forecast an increased risk of a recession in the world’s largest economy and predict it would weigh on growth since trade between the neighboring countries is so highly integrated.

The steepening U.S. yield curve shows bond traders have concluded that the case for Federal Reserve rate cuts is only strengthening — even as top policy makers signal they’re not yet ready to act.

“We’re continuing to see that wave of momentum,” said Ryan Nauman, market strategist at Informa Financial Intelligence. Traders are “hoping that the Fed will cut rates and hoping that a resolution to the trade concerns will come to an end sometime soon as the economy slows.”

The S&P 500 climbed 0.8 percent, to 2,826.15.

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