The S&P 500 and Nasdaq Composite notched records again Tuesday, as investors cheered trade talks among U.S. and Chinese officials following weeks of escalating tensions between the world’s two largest economies.
U.S. stocks have advanced in recent days, boosted by investors’ optimism about a potential treatment for coronavirus. Last week, the S&P 500 notched its first closing record since February and has climbed from there.
The S&P 500 added 12.34 points, or 0.4%, to 3443.62 on Tuesday, while the Nasdaq Composite rose 86.75 points, or 0.8%, to 11466.47. The Dow Jones Industrial Average slipped 60.02 points, or 0.2%, to 28248.44.
Investors welcomed news that senior U.S. and Chinese officials were committed to carrying out the phase-one trade accord signed in January. A videoconference late Monday brought together U.S. Trade Rep. Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He for a formal review of the deal.
Trade tensions between the U.S. and China buffeted markets last year. As relations soured over Covid-19 and the national-security law imposed by China on Hong Kong, investors worried that new frictions to trade and commerce would hurt the global economy.
“Of course it’s positive when you have that kind of newsflow—it’s reassuring,” said Nadège Dufossé, head of cross-asset strategy at asset manager Candriam. “It’s not in the U.S. and China’s interest to have a new trade war.”
Still, Ms. Dufossé said she wouldn’t make investments based on Monday’s review of the deal.
“It’s positive in the short term, but it can change very rapidly,” she said, adding that President Trump might seek to campaign for re-election by being tough on China. “On the technology front, I think frictions are here to stay.”
Investors have credited the stock market’s swift climb from its March lows in part to large amounts of fiscal and monetary stimulus. On Thursday, they will watch for clues about future monetary policy when Federal Reserve Chairman Jerome Powell speaks at the Kansas City Fed’s annual Jackson Hole Economic Policy Symposium.
“The big driver has just been the magnitude and the speed of the monetary response and the fiscal response,” said Holly MacDonald, chief investment officer at Bessemer Trust. “That’s been really the fuel behind the rebound in the markets.”
Among individual stocks, shares in J.M. Smucker rose $7.76, or 6.9%, to $120.75 after the food manufacturer reported a surge in sales in its most recent fiscal quarter.
The three companies that will be exiting the Dow Jones Industrial Average, part of a makeover prompted by Apple’s decision to split its stock, all lost ground. Raytheon Technologies dropped 93 cents, or 1.5%, to $60.95. Pfizer fell 43 cents, or 1.1%, to $38.41. Exxon Mobil slid $1.34, or 3.2%, to $40.88.
Investors rewarded their replacements in the blue-chip gauge. Amgen gained $12.65, or 5.4%, to $248.22. Honeywell International rose $5.16, or 3.2%, to $164.53. Salesforce.com added $7.59, or 3.6%, to $216.05.
Overseas stock markets were mixed. The regional Stoxx Europe 600 dropped 0.3%. In Asia, Japan’s Nikkei 225 rose 1.4%. China’s Shanghai Composite Index and Hong Kong’s Hang Seng both posted muted losses.
In another sign of investor optimism, yields on 10-year Treasury notes ticked up to 0.680%, from 0.645% Monday. Yields rise as bond prices fall.
Write to Joe Wallace at Joe.Wallace@wsj.com and Karen Langley at karen.langley@wsj.com
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
"close" - Google News
August 26, 2020 at 04:09AM
https://ift.tt/3aToJA8
S&P Edges Higher to Record Close - The Wall Street Journal
"close" - Google News
https://ift.tt/2QTYm3D
https://ift.tt/3d2SYUY
Bagikan Berita Ini
0 Response to "S&P Edges Higher to Record Close - The Wall Street Journal"
Post a Comment