U.S. equities jumped on reports that President Donald Trump had secured concessions from the European Union to ease trade tensions.
Treasurys declined on the news, while automakers, battered by the threat of tariffs, pared losses.
The S&P 500 Index pushed higher for the third straight day, and the Dow Jones Industrial Average jumped after Dow Jones reported, citing an EU official, that Europe had agreed to lower industrial tariffs, align regulatory standards on medical products and import more U.S. soybeans.
Trump’s meeting with European Commission chief Jean-Claude Juncker came amid a raft of earnings from U.S. companies, some of which reflected the impact of recent trade threats from the White House.
General Motors shares plunged after the carmaker cut its profit forecast on surging metals prices. Fiat Chrysler also cut its profit outlook.
Shares of both automakers pared some of their losses on the news of Europe’s concessions.
The greenback slipped as traders awaited developments from the meeting between Trump and Juncker. Trump was upbeat about the meeting, saying, “We expect something very positive.”
Trump earlier sent a Twitter message demanding both sides drop all tariffs, barriers and subsidies, before claiming the Europeans wouldn’t.