[ad_1]
(Corrects the fact that Apple provided the second largest, and not the largest, increase in the S & P 500 and Dow index, in the 6th paragraph)
* Index up: Dow 0.96%, S & P 1.21%, Nasdaq 1.35%
* China unveils a reform of interest rates. Germany refers to a stimulus
* US extends stay for Huawei
* Estee Lauder jumped after raising her forecast for the whole year
By April Joyner
NEW YORK, Aug 19 (Reuters) – US equities gained momentum on Monday as news of China's and Germany's stimulus efforts have eased fears of a severe slowdown in US stocks. the global economy, which had been stoked by falling bond yields.
The benchmark, the S & P 500, recovered most of its losses following a brief reversal of the yield curve on Wednesday between 2- and 10-year Treasury bonds, which is generally seen as an indicator of a recession in the US. next two years. After falling nearly 3% on Wednesday, the S & P 500 has risen over the last three sessions.
China's central bank unveiled a key interest rate reform on Saturday to help cut corporate borrowing costs. On Sunday, German Finance Minister Olaf Scholz suggested that Berlin could release up to 50 billion euros in additional spending.
"These are positive stories and this has created a risk environment that has persisted all day," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "Investors are happy to see countries recognize the risks that exist."
Equities also benefited from a boost, with Washington extending a 90-day window during which Chinese company Huawei Technologies, which was blacklisted by the US government in May, can buy components from US companies for to supply existing customers.
Apple Inc. shares rose 1.9%, which was the biggest boost for Nasdaq and the second largest for the S & P 500 and the Dow. President Donald Trump said Sunday that he had talked with Apple's CEO, Tim Cook, who had "argued well" that tariffs could harm Apple.
The S & P 500 technology index rose 1.6%, while the Philadelphia semiconductor index rose 1.9%.
"You really see some trade-sensitive names doing better," said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance in Charlotte, North Carolina. "This has boosted risk assets today."
The Dow Jones Industrial Average rose 249.78 points, or 0.96%, to 26,135.79, the S & P 500 gained 34.97 points, or 1.21%, to 2,923.65 and the Nasdaq Composite added 106.82 points, or 1.35%, to 8,002.81.
The top 11 sectors of S & P were higher. The share of energy, which rose 2.1% due to higher oil prices, led the S & P sectors up in percentage terms. Reflecting Monday's risk sentiment, defensive sectors such as real estate and utilities underperformed the index in percentage terms.
Given concerns about economic growth, investors have taken a close interest in the Federal Reserve's monetary policy. In July, the US central bank lowered interest rates for the first time in more than a decade.
Wednesday's release of minutes from the July Fed meeting, as well as President Jerome Powell's speech at the Jackson Hole symposium on Friday, could indicate whether the central bank will cut rates further, investors said.
The shares of Estee Lauder Cos Inc. jumped 12.5%, reaching a record high while the beauty company forecasted a turnover and profits higher than expected all year, fueled by a Demand for strong growth for its premium care products in the Asia-Pacific region.
Increasing issues outnumbered declining issues at the NYSE with a ratio of 2.81 to 1; on the Nasdaq, a ratio of 2.45 to 1 favored advances.
The S & P 500 has recorded 57 new highs over 52 weeks and a new low; Nasdaq Composite recorded 78 new highs and 60 new lows.
The volume of US trade amounted to 6.28 billion shares, against 7.58 billion on average for the full session of the last 20 trading days. (Report by April Joyner, additional report by Medha Singh and Akanksha Rana in Bengaluru, edited by Saumyadeb Chakrabarty, Shounak Dasgupta, Dan Grebler and Cynthia Osterman)
[ad_2]
Source link