Trade hope lifts tech stocks, S&P hits record high

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Trade hope lifts tech stocks, S&P hits record high

On Monday, the 1st of July, all three key indices of Wall Street had started off the day in an upbeat note, but rounded off the day at earlier highs, as global growth concerns offset optimism of Sino-US trade truce. Nonetheless, Monday’s (July 1st) Wall St.

gains were led by the tech stocks following US President Donald Trump’s decision of ease on Huawei ban, besides, progresses in US-China trade talks had lifted the Standard & Poor 500 index to an all-time record high.

Despite a better-than-anticipated outcome of Trump-Xi meeting on Saturday (June 29th) at the Japanese city of Osaka, which had witnessed concessions from both sides and rekindled hope of further trade talks, stocks had given up a good chunk of their earlier gains, as investors began to rethink on Fed’s dovish stance and possibility of an interest rate cut as early as this month.

Besides, due to a July fourth holiday, traders had shown caution ahead of a thin-volume trading week. Emphasizing Fed’s perspective over the latest developments of geo-political bubbles, an investment strategist at Robert W.

Baird in Milwaukee, Willie Delwiche said, “There was a celebration on the open and it was a case where if some of this trade uncertainty goes away, even if it is not solved, so to speak, that decreases the likelihood the Fed needs to step in, or at least step in as aggressively as people were thinking about a week and a half ago”.

Quoting statistics, at Monday (July 1st) market closure, trade-sensitive Dow added 0.44 per cent to 26,717.43, S&P rose 0.77 per cent to 2,964.33, while Nasdaq gained 1.06 per cent to 8,091.16 over upbeat gains of Huawei’s US suppliers on Trump’s soothing comments.