What trade war? Record highs on Wall St

The Dow Jones Industrial Average also reached a new high, with all 30 constituents flashing green at one point. Photo / AP.

US stock benchmarks continued their ascent Thursday on news from China about tariff and currency moves that could ease trade tensions. Treasury yields remained near their highest level this year. The US dollar slid.

The S&P 500 Index jumped to a record high on above-average volume, led by the technology, health-care and financial sectors. The Dow Jones Industrial Average also reached a new high, with all 30 constituents flashing green at one point. Most European and Asian shares also gained.

China is said to be planning to cut the average tariff rate it charges on imports from the majority of its trading partners as soon as next month. On Wednesday, Premier Li Keqiang his government wouldn't devalue the currency in order to boost its exports amid the trade war.

"When we get days where there isn't trade and tariffs escalation, which is in the news with us every day, market participants can focus more on fundamentals, and fundamental drivers continue to paint a pretty equity picture," Leo Grohowski, chief investment officer at BNY Mellon Wealth Management, said by phone. "We're striking a nice balance between good economic news and not becoming concerned yet about inflation."

The yield on 10-year Treasuries held above 3 percent, near its high for the year. The greenback weakened after a report said the U.S. and Canada are unlikely to reach a deal on Nafta in Washington this week; jobless data was solid but did little to change the mood. The pound surged after August retail sales came in higher than expected.

Equity markets have so far remained resilient in the face of rising bond yields, suggesting investors are comfortable with the outlook for corporate earnings and global growth even as borrowing costs rise along with trade tensions. Ahead of the Fed meeting next week some other central banks topped the agenda on Thursday, with Norway's policy makers raising interest rates for the first time in seven years as the SNB kept deposit rates unchanged. The European Central Bank's Peter Praet speaks later in New York.

Elsewhere, emerging-market assets continued to rally off the lows seen earlier this month, with the rand leading developing-world currencies as the South African Reserve Bank held its key interest rate at a two-year low. Norway's krone retreated as investors saw the central bank's rate trajectory as dovish, while the Swiss franc strengthened.

West Texas crude dropped after US President Donald Trump resumed his criticism of OPEC on Twitter.