The news that the U.S. and China want to avoid a trade war sent stocks soaring.

0
127

The news that the United States and China is willing to negotiate in order to avoid a trade war, which makes investors buying mood to profit on Monday, to the best day of the market for more than two years, and half erased losses last week.
The dow Jones industrial average rose nearly 670 points, and technology companies accounted for most of the gains. Microsoft is the biggest gainer in the dow and the s&p 500, up nearly 8 percent.
Bank shares also posted strong gains, benefiting from higher bond yields. Retailers, consumer goods companies and health-care stocks were among the biggest gainers.
The rebound was the worst week for U.S. stocks in two years, as investors took an optimistic view of the trade outlook last week and bought opportunities.
“Of course nothing can be done,” said Rob Haworth, senior investment strategist at bank of America wealth management. “Investors still see this as a semi-full market and a constructive economy, so it’s not surprising to see them buying value here, buying low and trying to rebuild their positions.”
The standard & poor’s 500 index rose 70.29 points, or 2.7 percent, to 2,658.55. The dow Jones industrial average rose 669.40 points, or 2.8 percent, to 24,202.60. The dow fell more than 1,400 points last week and is still down slightly this year.
The nasdaq gained 227.88 points, or 3.3%, to 7,220.54. Small-company Russell 2000 rose 33.63 points, or 2.2 percent, to 1,543.72.
Overall, the dow, the s&p 500 and the nasdaq have seen their biggest one-day gains since August 2015, with losses on Thursday and Friday slightly more than half that of the market.
Global stock markets fell sharply last week after Donald trump announced a $60 billion tariff on Chinese goods in a technical policy dispute because of fears of a trade war. On Friday, Beijing issued a $3 billion list of U.S. goods, aimed at retaliation for an earlier U.S. tariff hike on steel and aluminum imports. This has raised fears that the dispute could curb global trade and hamper the global economic recovery.
Those concerns eased on Monday after the Chinese government said it was willing to negotiate with Washington. According to a report released before the news, U.S. officials have submitted a list of applications.

Foreign ministry spokesman hua chunying did not confirm the Wall Street journal report, but said in a regular briefing: “our dialogue and discussions are always open.”
China has yet to explain how it will respond to Mr Trump’s proposed tariffs. That did not seem to dampen investors’ optimism on Monday.
“The statement about the President’s duties was a typical start to his negotiations,” said randy Frederick, vice President of trading and derivatives at Charles Schwab. “He used to do these things and now it looks like the market is telling us, ‘yes, that’s what happened. ‘”
Meanwhile, a top south Korean trade negotiator said on Monday that the United States had agreed to further open its car market to the United States as the two countries prepare to revise their six-year trade agreement.
Tech companies recovered some of the industry’s heavy losses last week. Microsoft rose $6.60, or 7.6 percent, to $93.78.
Financial stocks soared as bond yields rose. For Banks, higher yields are good because they raise interest rates on mortgages and other loans, making them better for borrowers. Bank of America added $1.27, or 4.4 percent, to $30.44.
The yield on the 10-year Treasury note rose to 2.85 percent from 2.81 percent late Friday.
Lowe’s was up 6.6 percent after the retailer said its chairman and chief executive, Robert nibloch, was about to retire. The stock rose $5.53 to $89.30.
Facebook ended the day with a small price tag after Facebook withdrew the early glitches caused by new questions about phone Numbers and text messages collected by Android devices. The federal trade commission confirmed on Monday that it was investigating the social media giant’s privacy practices, including whether it engaged in “unfair practices” that caused “significant harm” to consumers. The shares rose 67 cents, or 0.4 percent, to $160.06.

LEAVE A REPLY

Please enter your comment!
Please enter your name here