Dow jumps 600 points as trade war fears cool
- Author: Eleanor Harrison Mar 28, 2018,
Mar 28, 2018, 0:41
It lost more than 1,400 points last week as traders anxious that trade tensions between China and the USA would escalate.
But in Wall Street it was the best day since 2015, with the Dow Jones closed 670 points higher at 24,203.
BETTING ON BANKS: Financial stocks surged as bond yields rose.
The boomerang came after statements by U.S. Treasury Secretary Steven Mnuchin that he was optimistic that the United States and China could avert a trade war. The Nasdaq composite rose 227.88, or 3.26%, to 7,220.54, while the S&P 500 Index gained 70.29, or 2.72%, to 2,658.55.
The Dow gained 669.40 points, or 2.8 percent, to 24,202.60. The Russell 2000 index of smaller-company stocks picked up 15 points, or 1.1 percent, to 1,526. The S&P 500 was up 2.72 percent at 2,658.57.
U.S. stocks were still tearing higher at mid-session, with the Dow Jones up over 470 points at 24,003. The Federal Trade Commission confirmed Friday that it is investigating the social media giant's privacy practices, including whether the company engaged in "unfair acts" that cause "substantial injury" to consumers.
The stock, which already took a big hit last week, was the biggest decliner in the S&P 500 Monday, tumbling $9.10, or 5.7 per cent, to $150.29. Trump also unexpectedly threatened to veto a $1.3 trillion spending bill that could have closed down the government again for the third time this year, only to change his mind at the last minute. "The message over the weekend, though, was far less confrontational and suggested the US would be open to scrapping the tariffs in exchange for certain other concessions such as reduced tariffs on imported cars". The yield on the 10-year Treasury fell to 2.78 percent from 2.85 percent late Monday.
Tech stocks by far and away were the biggest risers, with Microsoft Corp (NASDAQ:MSFT) up 7.57% to US$93.78. Bank of America added 95 cents, or 3.3 percent, to $30.13.
Benchmark US crude fell 33 cents to settle at 65.55 dollars per barrel on the New York Mercantile Exchange. The athletics retailer rose 0.3% after quarterly revenue topped expectations and the airplane maker held on to a 0.4% gain after a sharp drop Thursday, when Trump announced tariffs moves against China.
It came as the gold price added 0.36% to US$1, 360.60 an ounce and USA benchmark crude oil - slipped 0.59% to US$65.48 per barrel.
CURRENCIES: The dollar rose to 105.54 yen from 105.22 yen on Monday. The euro strengthened to $1.2455 from $1.2367. The eurozone's STOXX 600 declined 0.72 percent, the Spanish Ibex Index fell 0.13 percent, while Italy's FTSE MIB Index slipped 1.24 percent. Wholesale gasoline lost 2 cents to $2.01 a gallon.