Dow leaps 200 points as higher rates boost bank shares

Spencer Platt | Getty Images News | Getty Images

A trader on the floor of the New York Stock Exchange the next morning of the Dow Jones Industrial Average lost more than 1,000 points on February 9, 2018.

Fears of a widespread trade war between the two largest economies in the world have been a source of thorn for investors this year, as tighter business conditions could hurt corporate profits. These fears have led to investor volatility this year. However, stocks are even higher for the year. The S & P 500 is up more than 8.5% in 2018 and is less than 1% of a record.

"Commercial tariffs will remain a major concern not only for companies but also for market players and especially for professional investors who have never experienced a commercial war outside of what they learned at the university" said Robert Pavlik, chief strategist at SlateStone Wealth.

Pavlik added that President Donald Trump's approach to trade policy is unconventional, "the US economy is strong, profits are healthy, and consumer and investor confidence remains high."

Boeing shares rose 1.8% while Caterpillar gained 2.2%. Both companies are considered as pillars of world trade because of their great exposure to foreign markets.

Asian equities rose overnight, driven by gains in Chinese and Japanese equities. The Shanghai Composite and the Nikkei 225 both gained 1.1%.

"The markets continue to ignore growing trade tensions, essentially placing a" Trump Tariff Put "," said Nicholas Colas, co-founder of DataTrek Research. "If equities begin to worry that the president's policies will jeopardize the growth of economic and corporate profits, the administration will be re-calibrated." It works well now, we are not sure it will continue. ;next year."

Shares of Tesla fell 0.6% after the company said that the Justice Department had asked last month for documents regarding CEO Elon Musk's tweets in early August on the privatization of l & # 39; company. The New York Times also reported that the Securities and Exchange Commission sent subpoenas to Goldman Sachs and Silver Lake, which helped Tesla move to private valuation.

Guggenheim analysts raised their price target to $ 420 from $ 360, which means a 14.2% increase over Tuesday's close. "We believe that Netflix's subscriber penetration will significantly exceed the implied value of the company's current valuation," analysts said. The stock rose by 2.7% before falling by more than 1%.