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(For a live blog on the US stock market, click or type LIVE / in a news window.)
* Index up: Dow 1.10%, S & P 1.16%, Nasdaq 1.45%
* Interest rate banks gain with rising US Treasury yields
* Estee Lauder leaps after the rise in the forecast for the fiscal year (Update of the market opening)
By Medha Singh
August 19 (Reuters) – US stocks surged Monday in the hope that major economies will counter the slowing economic consequences of rising global trade tensions, while technology stocks have risen, resulting in a nearly 3% increase in Apple's shares.
The Chinese central bank unveiled on Saturday a key rate reform to help reduce corporate borrowing costs, on the eve of the announcement of a possible easing of the German economy.
The recovery was also aided by the dwindling demand for safe haven government bonds, investors looking for deals on exhausted shares after three weeks of retreat. Rising bond yields boosted rate-sensitive banks, pushing up the S & P 500 Banks index by 1.55%.
"The yield curve is widening and people are starting to feel that it's time to go back to the stock market, especially after they've fallen in recent weeks," said Robert Pavlik, chief strategist. Investments and Senior Portfolio Manager at SlateStone Wealth LLC. At New York.
The traders will be divided on the direction to be followed for the next few weeks as they will balance business risks and signs of slowing growth with the increased potential for action of the US Federal Reserve and other countries in September.
The focus this week will be on Wednesday's release of the July Fed meeting minutes, when the central bank lowered rates for the first time in more than a decade and the president's speech. Jerome Powell at a central bank meeting at Jackson Hole on Friday.
"The street is hoping the Fed will remove the" mid-cycle "comment on rate cuts, which we all know will happen," Pavlik said.
Apple Inc. shares provided the biggest boost to the three major Wall Street indexes. President Donald Trump said Sunday that he had spoken with Apple CEO Tim Cook about the impact of US tariffs.
The chip makers, who depend on China for a large part of their revenues, also rose with the Philadelphia Flea Index up 2.46%.
US Secretary of Commerce Wilbur Ross announced Monday that the US government would extend the suspension granted to Huawei Technologies, allowing the Chinese company to buy supplies from US companies to serve existing customers, even as nearly 50 of its units were added to the United States. economic blacklist.
At 9:45 am ET, the Dow Jones Industrial Average was up 284.13 points, or 1.10%, to 26,170.14, the S & P 500 up 33.43 points, or 1.16% at 2,922.11. The Nasdaq Composite was up 114.49 points, or 1.45%, to 8,010.49.
The top 11 sectors of S & P were all up, with a gain of 1.67% in the top technology sector winners.
Estee Lauder Cos Inc. jumped 9.3% as its revenue and earnings for the year were better than expected, supported by the growing demand for its premium skincare products and the strength of its products. activities in Asia-Pacific.
Increasing issues outnumbered declining companies by a ratio of 4.36 to 1 on the NYSE and 3.97 to 1 on the Nasdaq.
The S & P index posted 28 new highs over 52 weeks and no new lows, while the Nasdaq recorded 44 new highs and 13 new lows. (Report by Medha Singh and Shreyashi Sanyal in Bengaluru, edited by Saumyadeb Chakrabarty)
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