Wall Street climbs on trade optimism, dovish Fed games
By Shreyashi Sanyal
(Reuters) – US shares rallied Tuesday, with S & P 500 closed at record levels, as President Donald Trump's comments to the US and China, and resumed trade negotiations for optimism over the prospect of a more inviting federal reserve .
Trump said he would meet Chinese President Xi Jinping at the G20 summit later this month, and that trade negotiations between the two countries would restart after a long lull.
This helped trade-sensitive industries jump 1.62%, while technology stocks have gained 1.79%, giving the largest increase to the benchmark.
Chip companies, which have a significant revenue exposure to China, led the rally between the tech shares with the Philadelphia Semiconductor index, which increased 4%.
The US central bank is expected to keep interest rates unchanged at its two-day policy meeting from Tuesday, but is generally considered to lay the foundation for a cut later this year.
T Han Fed's statement at 2 pm EDT (1800 GMT) on Wednesday is likely to provide insight into the impact of the US-China trade war, President Donald Trump's demand for a price cut, and weaker monetary data on monetary policy.
Hope for a surcharge has helped the S & P 500 increase by 5% this month, adding only 1% of its benchmark index from its early May performance.
"A price swing this week is off the table. But all eyes and ears are tuned to what the Fed mayor says about the prospects and how he hints about what's next," says Steven Skancke, finance manager for value creation and investment advisory firm Keel. Point in Washington.
"The great belief that interest rates have been reduced in September but everyone looks for a hint that it may come at the next meeting in late July. "
Promptly, ECB President Mario Draghi's comments suggesting the possibility of new surcharges or acquisitions.
At 10: 07:00 ET, the Dow Jones Industrial Average was up 316.31 poi NTS or 1.21% at 26,428.84, S & P 500 was up 33.71 points, or 1.17% at 2.923.38.
Nasdaq Composite was up 139.36 points, or 1.78%, of 7.984.39. 19659014] Store Cap volatile favorites such as Facebook Inc, Apple Inc., Amazon.com Inc, Microsoft Corp. all rose between 1% and 2%, offering the largest booster to Nasdaq.
Facebook climbed 1.34% after It revealed plans to launch a crypto competition called Libra, the latest development in its attempt to expand beyond social networking and move into e-commerce and global payments.
Progress issues ruled out decliners with a 6.38 to 1 ratio on the NYSE and with a 4.43 to 1 ratio on Nasdaq
The S & P index recorded 49 new 52 week heights and none ye low, while Nasdaq recorded 59 new heights and 17 new downs.
(Reporting of Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing of Sriraj Kalluvila)
