The S&P 500 index SPX, +0.91% jumped in late-Wednesday trade, driving the broad-market index official from out of correction territory on the heels of reports that President Donald Trump and European Union official Jean-Claude Juncker have avoided a trade war between the U.S. and the eurozone.
Any close above 2,839.10 would have marked the index’s emergence from correction territory, defined as a drop of at least 10% from a recent peak.
The S&P 500 fell into correction territory on Feb. 8, hitting a low of 2,581. Market technicians view a climb of at least 10% from a closing low as marking an official end of an asset’s corrective phase.
The S&P 500 closed up 0.9% at 2,846.07. The Dow Jones Industrial Average DJIA, +0.68% which remains several percentage points from emerging out of correction territory, finished up 0.7% at 25,414.10, while the Nasdaq Composite Index COMP, +1.17% booked a fresh record, up 1.2% at 7,932.24.
Wednesday’s advance comes amid news that Trump and Juncker have struck the broad outlines of an agreement to ease trade tensions that have been a main source of anxiety for market participants for months. A news conference between Trump and Juncker was set to take place imminently.
