Members of the Federal Reserve voted unanimously to raise borrowing costs by a quarter percentage point and expressed confidence that the economy would strengthen and inflation would rise in coming months.
The Dow Jones Industrial Average .DJI fell 218.55 points, or 0.9 percent, to 24,189.45, the S&P 500 .SPX lost 14.68 points, or 0.55 percent, to 2,642.19 and the Nasdaq Composite .IXIC dropped 25.28 points, or 0.36 percent, to 7,069.03.
The rising tensions sent oil prices surging, boosting energy stocks almost 1 percent.
Stocks are closing solidly higher as the market adds to its big gains from earlier in the week.
Since at least the mid-1990s, the S&P SmallCap 600 Energy Index has risen much more than the oil price when oil has risen, and fallen much more than oil when oil has fallen.
Specifically, at the close of transactions yesterday, the All-Share Index rose by 69.86 points or 0.17 per cent to close at higher at 40,499.04 compared with 40,429.18 posted on Monday.
Technology companies like Apple and Microsoft are bouncing back from their recent losses Monday, and banks are rising along with interest rates. Delta and BlackRock each rose 2.3 percent.
Disney Launches New ESPN+ Streaming Service
We've been saying this for a long time ; more recently, executives from ESPN and its owners at Disney have been saying it as well. But the app has a whole new look ("Let's get out of the way of the content and let the content really show", Pitaro said).
The stock exchange also carried out an analysis of the new investors and noted that a review of the new investors by type of employment indicated that majority of the new investors entering the stock market were those employed in the private sector.
Shares of major US automakers such as General Motors, Ford, Fiat Chrysler and Tesla were up between 2 percent and 3 percent following Xi's comments. The stock was the biggest decliner on the S&P, followed by peer WW Grainger's 4.2 percent drop.
Stocks are opening solidly higher on Wall Street as the market regains ground following a loss the day before.
Bond prices rose. The yield on the 10-year Treasury fell to 2.77 percent.
Technology companies and banks rose more than the rest of the market. The Nasdaq composite climbed 46 points, or 0.7 percent, to 7,115.
The S&P 500 fell 11 points, or 0.5 percent, to 2,644. Bank of America Merrill Lynch has said a trade war could move yields higher in the medium to long term.
The Dow Jones industrial average rose 212 points, or 0.9 percent, to 24,401.