Wall Street bounces as trading temperature cools By Reuters



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© Reuters. Traders work in the trading room of the New York Stock Exchange (NYSE) at the opening of the New York market

By Chuck Mikolajczak

NEW YORK (Reuters) – US stocks rose on Monday after a strong sell-off in the previous session after US President Donald Trump announced a trade deal with China, easing investors' worries after rocketing the rhetoric on the markets last week.

After the G7 summit of world leaders in Biarritz, France, Trump said he believed China was sincere about reaching an agreement, citing what he described as growing economic pressure on Beijing. and job losses in this country.

Shares of rate sensitive companies have increased. The 1.90% gain from Apple Inc. (O 🙂 provided the largest increase to each of the major indices.

Flea makers, who rely heavily on China for their income, have also made progress. The Philadelphia Semiconductor () index rose 0.86% after dropping more than 4% on Friday.

Nevertheless, market participants said the rebound was less marked than last week's decline and that they expected a persistence of recent volatility.

"The markets tell us something very important with this pricing action today." We are seeing overall gains for Nasdaq S & P and Dow, but we are also seeing a dramatic decline in volume, "said Peter. Kenny, founder of Kenny Commentary LLC and Strategic Board Solutions LLC in New York.

"This is not a healthy rebound, but almost every major index, which indicates that the momentum of US equities remains skewed downward," Kenny said.

The Dow Jones Industrial Average () rose 269.93 points, or 1.05%, to $ 25,898.83, the S & P 500 () gained 31.27 points, or 1.10%, to 2 878.38, and the Nasdaq Composite () added 101.97 points, or 1.32%, to 7,853.74. .

Commerce data shows that new orders for key capital goods manufactured in the United States edged up in July, while shipments fell in the last three years. The data could provide the Federal Reserve with more fuel to further reduce interest rates when policymakers will meet next month.

Concern over the recession in the global economy and uncertainty over the pace of interest rate cuts in the United States has raised some concern about the length of the country's current expansion. The S & P 500 is down more than 5% from the record reached in late July after experiencing its longest weekly decline since May.

Even with Monday's broad gains, with each of the main sectors of the S & P 500 index rising, the fear index, the CBOE () Volatility Index of Wall Street, has reached its highest level since more than a week in the session.

Among other actions, Celgene Corp (O 🙂 rose by 3.20% after Amgen Inc (O 🙂 said that he would buy the company's psoriasis drug, Otezla, thus paving the way for Bristol-Myers Squibb Co (N 🙂 for the completion of its $ 74 billion contract for Celgene . Bristol-Myers shares rose 3.28%

Increasing issues outnumbered declining issues at the NYSE with a ratio of 1.66 to 1; on the Nasdaq, a ratio of 1.74 to 1 favored the advanced.

The S & P 500 has recorded four new highs in 52 weeks and 17 new lows; the Nasdaq Composite recorded 17 new highs and 134 new lows.

About 5.71 billion shares have changed hands in US trade, compared to an average of 7.57 billion per day in the last 20 sessions.

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