Vastavam web: Wall Street’s major indexes rallied on Monday following a trade truce between the United States and China, whose tensions have clouded the outlook for the stock market for much of the year. The benchmark S&P 500 .SPX gained nearly 1 percent, building off of its biggest weekly percentage gain in nearly seven years a week ago, although the index had come off its earlier session highs in afternoon trading. “Today is mostly about celebrating the fact that the U.S. and China have delayed what could have been the some of the worst-case scenarios regarding their trade relations,” said Michael Arone, chief investment strategist at State Street Global Advisors.
Still, Arone noted that “there are still some very sticky issues that need to be resolved” between the world’s two biggest economies. “We still have a long way to go to have what is an agreed-upon trading relationship between the U.S. and China, so I think that is a little bit of the pullback from the highs of the day as that settles in with investors,” Arone said.
The Dow Jones Industrial Average .DJI rose 232.91 points, or 0.91 percent, to 25,771.37, the S&P 500 .SPX gained 23.68 points, or 0.86 percent, to 2,783.85 and the Nasdaq Composite .IXIC added 86.92 points, or 1.19 percent, to 7,417.46. Last week, the S&P 500 gained 4.8 percent, rebounding after confirming its second 10 percent correction of the year, as investors interpreted commentary from the Federal Reserve as signaling that U.S. interest rate hikes may be less aggressive than feared.
Shares of Boeing (BA.N) and Caterpillar (CAT.N), two industrial companies viewed as trade bellwethers, gained 3.5 percent and 2.3 percent, respectively, and gave a lift to the blue-chip Dow. The industrial sector. SPLRCI rose 1.2 percent. Energy shares .SPNY rose 2.0 percent as oil prices bounced back from their recent swoon. Along with the U.S.-China trade detente, oil got support as Canada’s Alberta province ordered a production cut, while exporter group OPEC looked set to reduce supply.
Advancing issues outnumbered declining ones on the NYSE by a 2.38-to-1 ratio; on Nasdaq, a 1.48-to-1 ratio favored advancers.