Stocks Extend Gains to Record Highs; Dollar Climbs: Markets Wrap

U.S. stocks rose for a fourth day, hitting records as China’s plans for tariff cuts on American imports and a spate of positive earnings reports overshadowed lingering concern about the economic hit from the coronavirus.

The S&P 500 was up more than 3.5% for the week and the Dow Jones Industrial Average reclaimed an all-time high. The dollar strengthened and stocks gained in Europe and Asia after China said it will lower levies on $75 billion of U.S. goods next week, adding a tailwind to growth. While some warn of complacency among investors, others flag support from central banks and recent economic indicators showing an expansion.

In corporate news, Twitter Inc. rallied after topping analysts’ projections for fourth-quarter revenue. Strong results also helped power the Stoxx Europe 600 Index to a record. ArcelorMittal SA jumped the most since 2011 after expressing optimism on the outlook for steel demand this year, and Societe Generale SA rose after pledging to boost shareholder returns. Japanese equities added more than 2% as Toyota Motor Corp. reported a higher-than-expected profit.

While better-than-forecast corporate profits are generating optimism, there’s also a fear among some investors that the rally this week has gone too far too fast, with Citigroup Inc. warning about a sense of euphoria taking over.

The S&P 500 Index rose 0.3% as of 11:34 a.m. New York time. The Stoxx Europe 600 Index increased 0.4%. The MSCI Asia Pacific Index increased 1.8%. The MSCI Emerging Market Index gained 1.2%.