Rally Extends, Chip Index Marks Record Highs

Rally Extends, Chip Index Marks Record Highs


FLASH: Semiconductor stocks outperformed following some positive industry indications, Chip Index at record highs

  • US- China trade talks resumed in Washington and the Financial Times reported a final trade deal is nearly done, enforcement a working issue
  • Positive non-manufacturing PMI data out of China and Europe

US stocks finished higher Wednesday, extending a strong start to the quarter as a rally among chip-maker shares provided a boost to the broader market on hopes of a trade deal between Washington and Beijing.

White House economic adviser Larry Kudlow said talks between the United States and China have progressed and both sides hope to get closer to a deal this week.

Shares of chipmakers, which rely heavily on China for revenue, especially benefited.

The Philadelphia Semiconductor index rose as much as 3% to a record high. The index ended 2.3% higher.

Positive sentiment on trade outweighed weak economic data. The Institute for Supply Management’s Us services sector PMI for March was below estimates and at its lowest since August 2017.

Earlier, the ADP National Employment Report showed US private employers added 129,000 jobs in March, below economists’ estimates.

Wednesday, the major US stock market indexes finished at: DJIA +39.00 at 26218.13, NAS Comp +48.86 at 7897.54, S&P 500 +6.16 at 2873.40

Volume: Trade on the NYSE came in at 870-M/shares exchanged

  • NAS Comp +19.0% YTD
  • Russell 2000 +15.8% YTD
  • S&P 500 +14.6% YTD
  • DJIA +12.4% YTD

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

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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