Stock Rally Powers On as Alphabet Up in Late Hours: Markets Wrap

Wall Street investors weighing the impacts of Donald Trump’s trade war on Corporate America sent stocks climbing amid bets the Federal Reserve could cut rates sooner than anticipated to prevent a recession.

The S&P 500 rose 2% to the highest since the day Trump announced his tariff offensive. The president said the US is talking with China on trade despite Beijing’s denial. In late hours, Alphabet Inc. jumped on solid earnings. Intel Corp. gave a weak forecast. Bond yields slid on wagers Fed Chair Jerome Powell will be under pressure to ease policy if the labor market unravels.