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By Caroline Valetkevitch
May 29 (Reuters) - The S&P ended a choppy session higher on
Friday after President Donald Trump made comments on China that
were less worrisome for the U.S. economy than investors
apparently had feared.
Stocks initially extended losses after Trump said he was
directing his administration to begin the process of eliminating
special treatment for Hong Kong in response to China's plans to
impose new security legislation in the semi-autonomous
territory.
But Trump made no mention of any action that could undermine
the Phase One trade deal that Washington and Beijing struck
early this year, a concern that had cast a cloud over the market
throughout the week.
"He began speaking in a very tough tone," said Chris
Zaccarelli, chief investment officer at Independent Advisor
Alliance in Charlotte, North Carolina. "The market was worried
he was going to announce something substantial, something
detrimental to the U.S. economy. Then, as he spoke, it became
clear the actions being taken were not going to be as dramatic
as originally feared."
Trump also said the United States is terminating its
relationship with the World Health Organization, something he
had threatened to do earlier this month.
S&P 500 technology shares gave the index its
biggest boost, while financials were the biggest drag.
The latest turmoil has fueled concern that worsening
tensions between the two world's largest economies could put
trade progress between the countries in jeopardy.
Expectations of a quick economic recovery from the
coronavirus pandemic have driven the S&P 500 up more than
30% from its March lows.
Unofficially, the Dow Jones Industrial Average fell
19.45 points, or 0.08%, to 25,381.19, the S&P 500 gained
14.47 points, or 0.48%, to 3,044.2 and the Nasdaq Composite
added 120.88 points, or 1.29%, to 9,489.87.
New York Governor Andrew Cuomo said Friday that New York
City is "on track" to enter phase one of reopening on June 8,
and he announced that five upstate regions will now transition
to phase two.
Federal Reserve Chair Jerome Powell, speaking in a webcast
organized by Princeton University Friday, reiterated the U.S.
central bank's promise to use its tools to shore up the economy
amid the coronavirus pandemic.
(Reporting by Caroline Valetkevitch in New York, additional
reporting by Sinead Carew; Editing by Leslie Adler)