Translate

Search This Blog

Search Tool




Asian Markets at Close Report

European Markets at Close Report

Mar 26, 2018

CNBC | Dow rises 500 points as trade tensions ease

cnbc.com

Dow rises 500 points as trade tensions ease

Fred Imbert, Alexandra Gibbs

Stocks traded sharply higher on Monday, bouncing back from strong losses in the previous session, as trade tensions between the U.S. and China appear to ease.
The Dow Jones industrial average rose 500 points, with Microsoft as the best-performing stock in the index. The S&P 500 gained 1.8 percent, with technology and financials leading all sectors higher. The Nasdaq composite advanced 2 percent.
The Financial Times reported China has offered to buy more semiconductors from the U.S. to help cut its trade surplus with the U.S. The Wall Street Journal also reported that U.S. and Chinese officials are working to improve U.S. access to China's markets.
U.S. Stocks Plunge Heading Into Market Close Michael Nagle | Bloomberg | Getty Images
U.S. Stocks Plunge Heading Into Market Close
Investors "have apparently recognized that a trade war is in no one's best interests and therefore extremely unlikely," said Jeremy Klein, chief market strategist at FBN Securities, in a note. "Specifically, the President merely wants to fulfill a campaign promise while China will only enact token countermeasures to appease its citizens. "
Markets overseas also jumped on Monday. In Asia, some indexes rose after news surfaced that the U.S. had agreed to excuse South Korea from steel levies. Meantime in Europe, stocks were slightly higher as investors tried to shake off worries surrounding a potential trade war.
Wall Street finished Friday's session deep in the red on Friday, with the Dow dropping more than 400 points by the close — closing at its lowest level since November and finishing in correction territory, as it was 11.6 percent down from its 52-week high.
Last week, President Donald Trump signed an executive memorandum that would inflict tariffs on Chinese imports — of up to $60 billion. China retaliated with their own set of levies, drawing up a list of 128 U.S. products that could be possible retaliation targets.
Social media firms continue to be under the radar, as abuse of people's data remains a key topic of discussion. Last week, reports emerged alleging that Cambridge Analytica, an analytics company, had gathered data from 50 million Facebook profiles without the permission of its users. While Facebook have since come out to apologize and try to rectify the matter, concerns remain.
On the central banking front, members of the U.S. Federal Reserve are due to deliver speeches at respective events Monday, including one by Fed Vice Chair Randal Quarles, who is due to speak at the HOPE Global Forum annual meeting in Atlanta.