US stocks rose on Monday, hitting record highs again on hopes of a US-China trade deal and an improving domestic economy. US officials on Friday indicated that a trade deal with China could be signed this month, with risk sentiment also boosted by Commerce Secretary Wilbur Ross saying on Sunday that licenses for US companies to sell components to Huawei Technologies Co would come ‘very shortly.’
In May, Huawei, the world’s largest telecoms equipment provider, was put under a US blacklist citing national security concerns. The technology sector gained, as trade-sensitive chip stocks rallied and also helped the Philadelphia Semiconductor index to a record high. Energy shares jumped along with gains in oil prices.
The third-quarter earnings season has been fairly upbeat, with the majority of S&P 500 companies beating profit expectations so far, according to Refinitiv data. All three major indexes posted record closing highs on Monday, extending a recent run of gains, on hopes of a US-China trade deal and an improving US economy.
The Dow Jones Industrial Average rose 115.36 points, or 0.42 per cent, to 27,462.72, the S&P 500 gained 11.46 points, or 0.37 per cent, to 3,078.37 and the Nasdaq Composite added 46.80 points, or 0.56 per cent, to 8,433.20.Morning-Market-Note-Tuesday-5th-November