President Trump Drops Some Tariffs on Chinese Goods, Stocks Rally

President Trump Drops Some Tariffs on Chinese Goods, Stocks Rally

$DIA, $SPY, $QQQ, $RUTX, $VXX

US stocks rallied Tuesday after the White House announced that it will delay the 10% tariff rate for some items imported from China until 15 December.

President Trump told reporters he wanted to delay the tariffs so consumers would not be hurt during the Christmas shopping season and said he had a very productive call with China.

On a related note, China’s Ministry of Commerce indicated that trade talks will resume over the phone within the next 2 weeks. 

President Trump has personally criticized Chinese President Xi for failing to do more to stem sales of the synthetic opioid fentanyl amid an opioid overdosing crisis in the United States along with not buying the US agriculture goods it has promised to buy.

The upbeat news contributed to gains in all 11 S&P 500 sectors and a 4% rally in Crude Oil prices ($57.04 bbl, +$2.23, +4.1%).

Nine sectors of 11 advanced at least 1.0%, led by the information technology (+2.5%), consumer discretionary (+1.7%), and communication services (+1.5%) sectors. The Philadelphia Semiconductor Index climbed 3.0%

Tuesday, the major US stock market indexes finished at: DJIA +382.20 at 26278.64, NAS Comp +152.95 at 8016.37, S&P 500 +43.23 at 2925.92

Volume: Trade on the #NYSE came in at 856-M/shares exchanged

  • NAS Comp +20.8% YTD
  • S&P 500 +16.7% YTD
  • DJIA +12.6% YTD
  • Russell 2000 +11.9% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral in here.

Stay tuned…

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