U.S. Stocks Rally on U.S.-China Trade Truce
Wall Street stocks rallied early Monday, joining most global exchanges in the euphoria after the U.S. and China agreed to a trade truce over the weekend.
The upbeat resolution to the long-anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping, who agreed they would not impose new tariffs, left investors must more bullish on the very near-term outlook for equities.
But following the G20 summit in Osaka, some analysts cautioned that Beijing and Washington remain far off from a long-term agreement to remove existing tariffs or resolve differences on technology-related trade.
The rebound Monday shows "there is fear among sidelined participants of missing out on further gains," Briefing.com analyst Patrick O'Hare said.
About 15 minutes into trading, the Dow Jones Industrial Average had gained 1.0 percent to 26,861.73, and the broad-based S&P 500 rose 1.1 percent to 2,975.09, as it reached a new intraday record.
Tech shares were especially buoyant and the tech-rich Nasdaq Composite Index jumped 1.6 percent to 8,132.34.
With the G20 out of the way, focus in this holiday-shortened week returns to a heavy load of U.S. economic data, including updates on the manufacturing and services industry, second-quarter auto sales and the jobs report for June.
Also, investors are beginning to look ahead to the second-quarter earnings season, which begins in about two weeks.
Source: Agence France Presse
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