Notably, over this past year, each time there was a public dust-up between the US and Chinese on the trade issues the market reacted negatively, and then resumed the rally.
Early Tuesday, President Trump dismissed concerns over a protracted trade war with China, saying the United States was “in a very strong position,” a day after his administration ratcheted up tensions by labeling Beijing a currency manipulator.
He stated that “Massive amounts of money from China and other parts of the world is pouring into the United States for reasons of safety, investment, and interest rates! We are in a very strong position. Companies are also coming to the US in big numbers. A beautiful thing to watch!”
China’s response was to back off fearing a massive currency flight like occurred in 2015.
Tuesday, US stocks bounced up more than 1%, from a Monday’s, as China stepped in to stabilize its RMB Yuan, easing concerns that currencies would be the next weapon in the US-China trade dispute.
The S&P Technology index, which includes companies that have a big exposure to China and were at the core of Monday’s selling, provided the biggest boost to the S&P index, rising 1.61%.
The S&P 500 and NAS Comp each snapped a 6-day losing streak.
Tuesday, the major US stock market indexes finished at: DJIA +311.78 at 26029.52, NAS Comp +107.23 at 7833.28, S&P 500 +37.03 at 2881.77
9 of the 11 S&P 500 sectors finished higher by at least 1.0%. The information technology (+1.6%), financials (+1.5%), and industrials (+1.5%) sectors led the advance, while the energy sector (-0.1%) as Crude Oil declined ($53.84/bbl, -$0.80, -1.5%) continued to decline.
Advancing issues outnumbered declining ones on the NYSE by a 2.17-to-1 ratio; on the NAS, a 1.85-to-1 ratio favored advancers.
The S&P 500 posted 4 new 52-week highs and 24 new lows; the NAS Comp recorded 21 new highs and 198 new lows.
Volume on all US exchanges was 7.93-B/shares, compared with the 6.91-Baverage for the full session over the last 20 trading days
Volume: Trade on the NYSE came in at 926-M/shares exchanged.
- NAS Comp +18.1% YTD
- S&P 500 +15.0% YTD
- DJIA +11.6% YTD
- Russell 2000 +11.4% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral with a Bearish bias in here.
DIA, SPY, QQQ, RUTX, VXX, DJIA, President, Trump, market, tech, stock, bounce, China, trade, currencies,