Market Momentum: Wall Street Rides Trade Truce Wave

Wall Street's indexes saw gains for the fifth consecutive day, spurred by a U.S.-China tariff truce. Despite lower consumer sentiment, markets rallied after Washington and Beijing agreed to pause their trade war. As volatility looms, investors remain cautious while awaiting clearer U.S. tax policy directions.

Wall Street's main indexes continued their upward trend on Friday, marking a fifth successive day of gains. This optimism follows the U.S.-China tariff truce acknowledged earlier in the week, even as economic data reveals worsening consumer sentiment. After initial gains, stocks faltered slightly due to dismal Consumer Sentiment Index results released by the University of Michigan.

The week's rally began robustly on Monday with the announcement of a 90-day trade war pause between Washington and Beijing, coupled with a limited trade agreement with the UK. Lindsey Bell, chief market strategist at Clearnomics, attributed Friday's gains to the easing of trade tensions but foresaw ongoing volatility amidst persistent tariff headlines.

Amidst cautious optimism, Paul Christopher of Wells Fargo Investment Institute highlighted the market's watchful approach regarding the full impact of tariffs. The S&P 500, Nasdaq Composite, and Dow Jones all closed with gains. Key stock movements included UnitedHealth Group recovering from losses under scrutiny, while Charter Communications surged following acquisition announcements.

(With inputs from agencies.)