Each of Wall Street’s three major averages kicked off the trading week by closing at records on Monday as signs pointed to progress between the US and China on a trade truce, while a round of merger deals also helped buoy sentiment.
A Chinese state-backed tabloid said Beijing and Washington were ‘very close’ to an initial pact, which lifted trade-sensitive semiconductor stocks, including Applied Materials Inc, up 4.18 per cent and Lam Research Corp, which gained 2.68 per cent. The Philadelphia Semiconductor index jumped 2.43 per cent and was on pace for its best day in just over three weeks.
Nvidia Corp rose 4.89 per cent and paced the gains on the chip index as Morgan Stanley upgraded its shares to ‘overweight’ from ‘equal weight’. The report came on the heels of comments over the weekend by a top US official that an agreement was still possible by the end of the year, dampening worries the negotiations could spill over into 2020.
The Dow Jones Industrial Average rose 189.77 points, or 0.68 per cent, to 28,065.39, the S&P 500 gained 23.29 points, or 0.75 per cent, to 3,133.58 and the Nasdaq Composite added 112.60 points, or 1.32 per cent, to 8,632.49. Apple Inc rose 1.75 per cent as the top boost to the S&P and Nasdaq and the second-biggest lift to the price-weighted Dow Jones Industrial Average. Gains on Monday were broad with only the defensive consumer staples and utilities S&P sectors in the red. Tech gains helped push the Nasdaq up by more than 1 per cent, with the group on pace for its best day since 1 November.Morning-Market-Note-Tuesday-26th-November