The Dow and broader U.S. stock market rose on Wednesday, shrugging off early volatility as rising oil prices boosted energy shares.
Global equities were much more subdued amid concerns that another trade war was unfolding between two neighboring Asian economies.
All of Wall Street’s major indexes advanced, overcoming a volatile pre-market for Dow futures. The Dow Jones Industrial Average jumped 258.20 points, or 1%, to 26,036.10.
The broad S&P 500 Index of large-cap stocks gained 0.7% to 2,887.94, with most sectors reporting gains.
Slumping energy shares put downward pressure on the Nasdaq, which underperformed the Dow and S&P 500. The technology-driven average rose 0.4% to 7,856.66.
Trade relations between Japan and South Korea soured last Friday after Tokyo dropped its Asian neighbor as a preferred trading partner.
South Korea’s ruling Democratic Party accused Japan of waging “economic war” after Tokyo dropped the country as a preferred trading partner. The move was the latest in a protracted dispute that threatens to disrupt global supply chains tied to smartphones and electronics.
On Friday, Japan announced it was removing South Korea from a so-called white list that gave the neighboring Asian country preferred status in bilateral trade. As of August 28, Japanese exports to South Korea must go through additional screening to ensure they are not used for weapons.
While Japan has assured that the new measures are not equivalent to a trade ban, South Korea’s president said they were “reckless.”
“If Japan — even though it has great economic strength — attempts to harm our economy, the Korean Government also has countermeasures with which to respond,” President Moon Jae-in said earlier this month, according to CNN.
Last modified: June 23, 2020 2:34 PM UTC