Dow rallies more than 250 points

The Dow Jones Industrial Average surged to its first record high since January on Thursday as gains in Apple and a decrease in trade fears lifted the 30-stock index.

The Dow jumped 251.22 points to 26,656.98 as Boeing, Caterpillar and Apple all rose. The S&P 500 also rose 0.8 percent to an all-time high, its first since late August, as materials, consumer staples and tech outperformed. The broad index close Thursday's session at 2,930.75.

President Donald Trump touted the S&P 500's record in a tweet, saying "Congrats USA!"

Donald J. Trump@realDonaldTrump

S&P 500 HITS ALL-TIME HIGH  Congratulations USA!

The Nasdaq Composite climbed 1 percent to 8,028.23 as Amazon also gained 1 percent as the company unveiled several Alexa-powered devices, including a microwave. The tech-heavy Nasdaq closed about 1.3 percent away from a record high. Apple, meanwhile, closed 0.8 percent higher.

Boeing and Caterpillar, two bellwethers for trade, rose 0.6 percent and 2.1 percent, respectively.

The Chinese commerce ministry said Thursday the country hopes the U.S. will take steps to correct its behavior. The comments come as the two countries slapped tariffs on each other's goods.

Traders work on the floor of the New York Stock Exchange (NYSE) at the closing bell, November 30, 2017 in New York City

"I think we're moving away from fears of a global trade war to maybe just one with China," said Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management. Earlier, "it seemed like more countries would be caught in the administration's cross hairs; now it appears to be just one."

The U.S. administration announced Monday it would inflict 10 percent tariffs on $200 billion worth of Chinese imports, which would rise to 25 percent by year-end. China retaliated Tuesday by announcing levies targeting over 5,000 American products worth $60 billion and to go into effect next week. The country has also filed a complaint with the World Trade Organization about the U.S.' latest round of duties.

However, the levies imposed by both countries were seen as less than previously feared, helping lift sentiment on Wall Street. The Dow is up 1.9 percent this week while the S&P 500 has risen 0.9 percent in that time.

"I'm not at all surprised investors are taking the latest tariffs and the more muted response from China as a positive," said Kate Warne, investment strategist at Edward Jones. She noted that trade news have been both a positive and negative catalyst for stocks this year. Hence, a more muted escalation to the trade conflict is seen as a net positive. "But I don't think the worries about trade are completely over, especially if the U.S. tariffs on China increase to 25 percent."

J.P. Morgan Chase CEO Jamie Dimon also played down the conflict between the U.S. and China, calling it a skirmish and not a trade war.

Tom Martin, senior portfolio manager at Globalt, thinks investors should be more concerned with the trade situation, however. "It will take people some time realize this is not going away anytime soon," he said. "We think the situation with China will take the longest time to resolve."

General Electric shares fell 3.1 percent after an analyst at J.P. Morgan slashed his price target on the company to $10 from $11. The analyst noted he expects "weaker results at power and some franchise value impact."

Nvidia slipped 2.1 percent after analysts at Morgan Stanley called the company's new gaming card disappointing.

Disney's stock rose 1.7 percent after ESPN announced its video streaming service reached more than 1 million paid subscribers in five months.

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