MARKETS: Technology and communications companies led stocks broadly higher as cautious optimism about the potential for progress in the costly trade war between the U.S. and China put investors in a buying mood.
The gains reversed some of the major stock indexes' hefty losses from last Friday, when jitters over the latest escalation in the trade dispute roiled the market, contributing to its fourth straight weekly loss.
Big technology companies, which do a lot of business in China and have much riding on the outcome of the trade dispute, accounted for a big share of the gains. Apple climbed 1.9% and Microsoft added 1.5%. Along the way, traders have been repeatedly whipsawed by the turns in the trade war between the world's biggest economies.
The new round of tariff threats caused a sell-off on Friday that erased more than 600 points from the Dow. Global markets appeared headed for another wave of selling early Monday, when indexes in China closed sharply lower, until Trump said his trade negotiators had received two"very good calls" from China on Sunday.
Ben Phillips, chief investment officer at EventShares, credited Monday's market bounce on investors buying back in after a big sell-off more than on real optimism over the long-running trade conflict. Bond prices fell, which sent the yield on the 10-year Treasury up to 1.54% from 1.52% late Friday. Higher yields push up interest rates on mortgages and other consumer loans, which helped drive bank shares higher. Bank of America gained 1.2%.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asia stocks set to drop as US-China trade war intensifiesStocks in Asia were set to trade lower on Monday following an escalation in the U.S.-China trade war late last week.
Read more »
European stocks set to open lower amid rising US-China trade tensionsEuropean stocks are set to begin Monday's session in the red as investors react to the latest escalation in the U.S.-China trade war.
Read more »
Wall Street sees elevated recession risk, market woes after US and China stoke trade fearsSome of Wall Street's top economists and strategists see last week's trade war escalation as an ominous sign for the economy and markets.
Read more »
Wall Street analysts say these stocks present a buying opportunity if the US enters a recessionCNBC combed through Wall Street research to find stocks that analysts like if the U.S. were to enter a recession.
Read more »
U.S. equity futures reopen lower, U.S.-China trade relations at new low ebbU.S. stock index futures dropped when electronic trading resumed on Sunday, with...
Read more »