US stocks have climbed, led by gains in technology stocks on optimism from the US-China trade talks. Despite losing some of its initial steam, the S&P 500 still managed to close at a record high after the US and China agreed on Saturday to resume trade talks. US President Donald Trump also offered concessions including no new tariffs and an easing of restrictions on Huawei Technologies, while China agreed to make unspecified new purchases of US farm products.
Still, stocks had given up a good portion of their earlier gains on Monday as investors contemplated whether the US Federal Reserve would be as dovish as has been anticipated recently, and caution crept back in for what is likely to be a lightly traded week due to the July 4 holiday. Tech stocks, Wall Street’s top performers so far in 2019, jumped 1.45 per cent on Monday, with heavyweight Apple’s 1.83 per cent gain providing the biggest boost.
Chipmakers with a sizeable revenue exposure to China jumped nearly 5 per cent at their session high before also pulling back, last showing a 2.65 per cent gain in the Philadelphia Semiconductor index. Huawei supplier Micron Technology gained 3.9 per cent.
The Dow Jones Industrial Average rose 117.47 points, or 0.44 per cent, to 26,717.43, the S&P 500 gained 22.57 points, or 0.77 per cent, to 2964.33 and the Nasdaq Composite added 84.92 points, or 1.06 per cent, to 8091.16.Morning-Morning-Note-Tuesday-2nd-July