Xi’s Comments on ‘Opening Up’ China Driving Broad Rally
$DIA, $SPY, $QQQ, $VXX
Wall Street’s major stock indexes hit session highs Tuesday as investors concerns about rising US-China trade tension receded after Chinese President Xi Jinping promised to cut import tariffs.
Fully 10 of the 11 major S&P sectors were higher, with the energy index adding more than 3%. The biggest boost came from a 2.2% gainer in the tech sector.
The S&P and the tech-heavy NAS Comp were up more than a 1%, while the DJIA gained 2% with 29 of its 30 components in the Green
President Xi vowed to open the country’s economy and said China would raise the foreign ownership limit in automobile, shipbuilding and aircraft sectors “as soon as possible”.
His comments fueled global markets
What we are seeing in the market is no longer fearful of trade war and people rushing to get back in and reposition themselves for what is now seen a no trade war.
US stocks will face a major test in coming weeks as Q-1 earnings start being reported in earnest.
Big banks: JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) will kick off the earnings season with their results Friday.
Analysts expect quarterly profits for S&P 500 companies to rise 18.5% from a year ago, which would be the biggest gainer in 7 years, according to Thomson Reuters I/B/E/S.
Tuesday, the major US stock market indexes finished at: DJIA +428.90 at 24408.00, NAS Comp +143.96 at 7094.30, S&P 500 +43.71 at 2656.87
Volume: Trade on the NYSE came in at 888-M/shares exchanged
- NAS Comp +2.8% YTD
- Russell 2000 +0.5% YTD
- S&P 500 -0.6% YTD
- DJIA -1.3% YTD
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